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This research paper analyses the strategic and managerial rationale for M&A activity in the pharmaceutical industry in the case of Sanofi-Aventis.

The first two sections provide the conceptual and theoretical framework for this research. First, the concepts of M&A and synergy will be defined; then, a selection of the major theories and literature on M&A from the strategic and managerial schools will be introduced and explained. Consequently, according to the deductive logic, the third section will hypothesize the rationale for Sanofi-Synthélabo to acquire Aventis derived from the general theories on M&A. The subsequent sections represent the main part of the research paper, which deals with testing the hypothesis in the case of the Sanofi-Aventis merger. After having stated the hypotheses, the methodology is provided which analyses and justifies the methods used to test the hypotheses. Then, the pharmaceutical industry and its characteristics, as well as both, Sanofi-Synthélabo and Aventis will be briefly analysed. Finally, the hypotheses are tested on their validity through comparison with the key findings of the research, revealing the strategic and managerial rationale for Sanofi-Synthélabo to acquire Aventis.