The Impact of the HP-Compaq Merger on the PC Market

On September 4111 , 2001, Hewlett Packard announced its intention to acquire one of its rivals, Compaq, for a stock deal valued at $25 billion, the biggest deal in the history of the computer industry. If the merger is successful, the new HP will become the number 1 global player in IT infrastructures, access devices and imaging and printing. Mergers and Acquisitions Strategy (M&A) have become a popular strategy for gaining competitive advantage in a particular industry. The objective of this paper is to study the implications of this merger. To do this, we focused on the strategies of the individual companies immediately before the merge, discussed the reasons for the merge, and analyzed the situation of the company after the merge and the merges and acquisition strategy. Ultimately, we gave our recommendation on a future strategy by identifying the critical issues to the success of the new company