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The recent mega-mergers show that manufacturing is a mug's game

By John Plender   June 1998

Unlike some other deals in this roaring bull market, the takeover of US car maker Chrysler by Germany’s Daimler-Benz has the merit of industrial logic. But it does raise an intriguing question about the relative valuation of companies.

The motor industry is hugely important for trade, investment and employment. Yet before news of the deal leaked, the two motor giants were jointly valued in the stock markets at ?31 billion. This was a third less than Lloyds TSB, a predominantly domestic British retail bank, and about half the worth of drugs group Glaxo Wellcome.

On the same day two other…

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