Strategic Interdependence, a central concept in strategic fit, suggests how interdependent merging firms should be in termsof capability transfer and resource sharing. This determines whether value will be created through (i) value capture, a one-time, transaction-related event involving shifting value from previous shareholders/stakeholders to the acquiring firm’sstakeholders; or (ii) value creation, a longer-term approach based upon managerial action and the transfer of capabilitiesbetween firms through mechanisms of resource sharing, functional skills transfer and general management capability. Suchtransfer creates value that would not exist if the firms operated separately, as these capabilities are immobile (Barney,1991)and not easily exchanged on the markets (Dierickx and Cool, 1989; Capron et al., 1998). This requires integration of organi-zational structures, functional activities, systems and cultures, to create a functioning whole (Pablo, 1994).