Hammer Bank Group: Micro-View of a Mega-Merger

Following two key acquisitions in 1995, Hammer Bank Group had made no attempt to merge these entities into its own operations until 1997, and only limited progress by 2000. This case describes the conflicts and resistance to integration through the contrasting perspectives of four central actors in the process: the outside consultant hired to implement the integration, and the heads of the three finance departments whose operations were targeted for operational integration.

Students analyse post-merger integration at two levels. At the strategic level, the case generates discussion about the challenges of achieving operational synergies through integration. At the micro-level, it generates discussion about the interaction of cultures and personalities in terms of negotiation, power and influence, hierarchy and control, and that interaction�s impact on the integration process and outcomes. Because the integration was later reversed (included in the Teaching Note), the case also serves as the basis for discussing conditions under which integration is difficult or not even desirable.