This merger of two behemoths represents a great opportunity for the smaller, nimble and quicker companies operating in our space.
The first thing that goes out of the window when mergers like this occur is the customer's wishes and wants. The beauracracy that necessarily weighs down and constricts such a large company serves to make that company immune to outside influences and the Wal-Mart Disease can rear its ugly head.
What is the Wal-Mart Disease....?? Well according to Forbes Magazine it is when senior management (especially CEOs) " develop an obsession with sticking to the core business, and doing everything possible to defend and extend it — even when rates of return are unacceptable and there is a constant struggle to improve valuation."
The disease develops further and "becomes so obsessive about execution, so focused on doing more of the same, that you forget your prime objective is to grow the investment. Not just execute. Not just expand with more of the same by constantly trying to enter new markets – such as Europe or China or Brazil. The #1 job of company leaders is to improve the rate of return. The Disease keeps management so focused on trying to work harder, to somehow squeezing more out of the old success formula, to finding new places to implement the old success formula, that they ignore environmental changes which make it impossible, despite size, for the company to ever again grow both revenues and rates of return. And they remain disconnected from other, better opportunities."
Whether or not this happens to the newly merged Life Tech. and TFS remains to be seen, however their respective recent share price history indicates they're well on their way.