Thunderbird Case

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Case #: 
A02-17-0005 (A) - Author Michael H. Moffett

CEMEX S.A.B. de C.V. (NYSE: CX) – Cemex – had made a name for itself in the global marketplace for two things – excellence in execution and rapid growth through acquisition. In an era in which globalization was a practice for multinational firms calling highly industrialized countries home, Cemex broke the mold. It was a multinational player calling a lower income country, Mexico, home. Led by Lorenzo Zambrano, the grandson of the founder, Cemex had followed a rapid growth trajectory through repeated acquisitions. Now in 2006 it was once again on the prowl, stalking the Rinker Group of Australia. But Rinker was not for sale. Cemex would be making an unsolicited and hostile offer.

This case has been used in both graduate degree and non-degree management programs to provide a primer in the use of discounted cash flow and comparable multiples for the valuation of firms. It also provides a detailed context of how an acquiring firm may see ways to create value through acquisition, primarily through cost synergies, raises questions over the economic drives of business valuation, in addition to exploring the mechanics of hostile acquisitions


Mexico, Australia, USA
9 pages
Published material