This is the case of achieving synergy between companies through their partial to full integration. Geographical expansions or roll-ups in fragmented industries often seek this endstate. Historically these additive kinds of combination tend to be more successful than others but also bloodier. Financial and operational synergies are achieved by consolidation. This means crunching functions together and often leads to
reductions in force. The optimal result is full cultural integration the blending of
both companies’ policies and practices. The “merger of equals” between Smith
Kline and Beecham (and of these with Glaxo Wellcome to form GSK) and the combination of Canada’s Molson Breweries with Australia’s Carling O’Keefe are examples.