Incompatible strategies in international mergers: the failed merger between Telia and Telenor

The aim of this paper is to explore the problems of incompatible strategies in international mergers. Studying a failed merger between the two state-owned Scandinavian telecom corporations, we examine how the parties' strategies were incompatible. We find that the parties' strategies were incompatible in three distinctive areas, and study how the companies tried to resolve these incompatibilities. Owing to national governance structures established to protect national interests, the parties were unable to resolve these strategic incompatibilities. Journal of International Business Studies (2008) 39, 508–525. doi:10.1057/palgrave.jibs.8400354