Why L'Oreal Kept the Nurse while P&G Killed the Panda? Cross-border M&A with Vertical Restraints

Acquiring the local distribution channel is one of the most important entry strategies by MNE into emerging consumers markets. Buying the local brand company to get access to the local distribution is common these days. Whether the MNE keeps the local brand or not depends on the degree of product differentiation. When the products are similar, the MNE buys the local brand and kill it. When products are very different, then the MNE keeps the local brand.