Post-Merger Integration and Corporate Culture: Acquisition of Lehman Brothers by Nomura and Barclays

Nomura-Barclays-Lehman mergers and acquisitions (M&As) deal after the financial crisis in 2008 is the latest example of how corporate culture affects the patterns of post-merger integration. After the acquisition announcement, Nomura and Barclays have been in opposite stand. Semi-structured interviews with ex-Lehman workers in the two acquiring companies illuminate the different nature of their post-merger integration strategies. It is found that cultural fit can be either a stepping stone or an obstacle for successful post-merger integration. This unique, highly-publicized merger case can teach us interesting and valuable lessons on how the process of post-merger integration can be more effectively planned and implemented. One of the main contributions of this case study is that it performed structured and detailed interviews with both groups of employees from ex-Lehman employees at Nomura and Barclays and analyzed the interview data utilizing the existing theories on organization culture. In the process, this research developed a practical, operating model that can be used in the real-world situation. This visualized form of the 2x2 matrix can help firms to assess the current status of post-merger integration level and synergy effects as well as to devise appropriate strategies based on the analysis.