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    The Major M&A Deal Undertaken Abroad

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    RahulGupta
    The document summarizes several major M&A deals undertaken by Indian companies abroad between 2007-2009. These include Tata Steel's acquisition of Corus for $12.1 billion, Hindalco's acquisition of Novelis for $6 billion, and Tata's purchase of Jaguar and Land Rover for $2.3 billion. It then provides details on Tata Steel's acquisition of Corus, the largest Indian takeover of a foreign company at the time. The document also discusses reasons, benefits, financing, and potential problems of M&A deals.

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    The Major M&A Deal Undertaken Abroad

    Uploaded by

    RahulGupta
    15 views9 pages
    The document summarizes several major M&A deals undertaken by Indian companies abroad between 2007-2009. These include Tata Steel's acquisition of Corus for $12.1 billion, Hindalco's acquisition of Novelis for $6 billion, and Tata's purchase of Jaguar and Land Rover for $2.3 billion. It then provides details on Tata Steel's acquisition of Corus, the largest Indian takeover of a foreign company at the time. The document also discusses reasons, benefits, financing, and potential problems of M&A deals.

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    The document summarizes several major M&A deals undertaken by Indian companies abroad between 2007-2009. These include Tata Steel's acquisition of Corus for $12.1 billion, Hindalco's acquisition of Novelis for $6 billion, and Tata's purchase of Jaguar and Land Rover for $2.3 billion. It then provides details on Tata Steel's acquisition of Corus, the largest Indian takeover of a foreign company at the time. The document also discusses reasons, benefits, financing, and potential problems of M&A deals.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as ppt, pdf, or txt
    15 views9 pages

    The Major M&A Deal Undertaken Abroad

    Uploaded by

    RahulGupta
    The document summarizes several major M&A deals undertaken by Indian companies abroad between 2007-2009. These include Tata Steel's acquisition of Corus for $12.1 billion, Hindalco's acquisition of Novelis for $6 billion, and Tata's purchase of Jaguar and Land Rover for $2.3 billion. It then provides details on Tata Steel's acquisition of Corus, the largest Indian takeover of a foreign company at the time. The document also discusses reasons, benefits, financing, and potential problems of M&A deals.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
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    of 9

    The major M&A deal undertaken

    abroad
    Tata Steel buys Corus Plc USD 12.1
    billion

    Hindalco acquired Novelis USD 6


    Inc. billion

    Tata buys Jaguar and USD 2.3


    Land Rover billion

    Essar Steel acquired USD 1.58


    Algoma Steel billion
    Tata Steel-Corus: $12.2 billion

    On January 30, 2007, Tata Steel purchased a 100%


    stake in the Corus Group at 608 pence per share in an
    all cash deal, cumulatively valued at $12.2 billion.

    The deal is the largest Indian takeover of a foreign


    company till date and made Tata Steel the world's
    fifth-largest steel group.
    Financing M&A
    Cash

    Financing

    Hybrids
    Motives & Benefits of M&A
    Economies of large scale
    Increased Revenue/ Increased Market Share
    Synergy
    Expansion and Growth
    Surplus Resources
    Wider customer base and increase in market share
    Product , services and business diversification
    Reducing competition
    Reasons for M&A
    # Accessing new markets 
    # Maintaining growth momentum
    # Acquiring visibility and international brands 
    # Buying Cutting Edge Technology Rather Than
    Importing It 
    # Taking on global competition
    # Improving Operating Margins And Efficiencies
    # Developing New Product Mixes
    Problems of M&A
    Integration Difficulties

    Inadequate Evaluation of Target:

    Large or Extraordinary Debt:


    Inability to Achieve Synergy

    Overly Diversified.

    Managers Overly Focused on Acquisition:.

    Too Large
    Some M&A in India
    India Aluminium and copper giant Hindalco
    Industries purchased Canada-based firm Novelis
    Inc in November 2007
    In November 2008 NTT DoCoMo acquired 26%
    stake in Tata Teleservices for USD 2.7 billion. 
    2009 saw the acquisition Asarco LLC by Sterlite
    Industries Ltd's for $1.8 billion
    In May 2007, Suzlon Energy obtained the
    Germany-based wind turbine producer Repower.
    THANK
    YOU

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