The CEO of AP, a listed real estate investment company based in Paris, has decided to meet with its majority shareholders to announce the company's merger with a major competitor in their market.
Pierre Joussard has been part of AP's strategic management for a few months and must present with his team the most efficient post-merger integration for AP during the meeting with AP's shareholders and management.
Pierre Joussard has to choose whether the relationship between the two entities should be equal (symbiotic integration) in order to foster synergies between the entities while preserving the autonomy of each, or whether the integration should be an absorption, favoring an integration mode mode modeled on AP.
The price offered under these two options will not be the same. Pierre Joussard must therefore weigh the pros and cons of each scenario in order to present the chosen integration mode.