Facts & Reasons for the Merger of Pfizer and Warner-Lambert of Corporate Restructuring

            It is always a choice for companies to continue standing on their feet, or merge with other companies. The choice can be made because of any financial or organizational issue to handle the business, or it can be made to found new opportunities and become more profitable. This is what Warner-Lambert and American Home Products (AHP) were seeking in 1999. Both companies showed an intention in the media that they are willing for a merger, but this announcement was not a good one for Pfizer, who already had business integration with Warner-Lambert. So, that’s why Pfizer came with aggressive strategy to take over Warner-Lambert. Their hostile behavior forced Warner-Lambert to think on making merger with Pfizer. Warner-Lambert tried its best to convince shareholders that merger with AHP would be a fruitful one in financial terms, but they could not do so, and finally it has to merge with Pfizer in 2000 (McCullagh, 2000)

            The reason for Pfizer to acquire Warner-Lambert was very clear that they wanted to grow as one of the leading pharmaceutical companies in the world, sand such mergers would certainly put them on their desired track. So, Pfizer’s hostile efforts paid off and it was able to buy Warner-Lambert, with a deal finalizing at $90.2 Billion. With this huge merger, Pfizer became the second largest one in the pharmaceutical market. It also allowed Pfizer to grow more quickly and find new opportunities in the market. So, the main purpose of this merger on Pfizer’s part was to become a huge pharmaceutical company capturing more market share. Such merger has also started a debate in the market that Pfizer may also be able to acquire GlaxoSmithKline. The competition will be on the rise with this merger and companies like Pfizer will be able to shape the business dynamics of pharmaceutical industry on global scale (PETERSEN, 2000). It is important to mention that when mergers are made, the financial strength of company is drastically enhanced, and it can also allow a company to get more competitive advantages as compared to their competitors. The merger made by both companies was to find new business opportunities, and increase their value in the global pharmaceutical market

References of Facts & Reasons for the Merger of Pfizer and Warner-Lambert of Corporate Restructuring

Forbes. 2018. #80 Pfizer. Accessed November 12, 2018. https://www.forbes.com/companies/pfizer/#4a62a75a2d6b.

Gilson, Stuart C. 2001. How To Make Restructuring Work for Your Company. Accessed November 12, 2018. https://hbswk.hbs.edu/item/how-to-make-restructuring-work-for-your-company.

McCullagh, Melanie. 2000. Emerging from the Merger: Warner-Lambert and Pfizer. Accessed November 12, 2018. https://www.pharmaceuticalonline.com/doc/emerging-from-the-merger-warner-lambert-and-p-0001.

PETERSEN, MELODY. 2000. Pfizer Gets Its Deal to Buy Warner-Lambert for $90.2 Billion. Accessed November 12, 2018. https://www.nytimes.com/2000/02/08/business/pfizer-gets-its-deal-to-buy-warner-lambert-for-90.2-billion.html.

Pfizer. 2018. PHARMACIA MERGER. Accessed November 12, 2018. https://www.pfizer.com/about/history/pfizer_pharmacia.

Pfizer.com. 2018. WARNER LAMBERT. Accessed November 12, 2018. https://www.pfizer.com/about/history/pfizer_warner_lambert.

Udoidem, John O., and Ikechukwu A. Acha. 2012. "Corporate Restructuring through Mergers and Acquisition: Experience from Nigeria." Journal of Economics and Sustainable Development 3 (13): 135-142.