Mergers and Acquisition Analysis

Ekta Bihani
14KA
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M&A 1
Type- Acquisition

Company 1 Company 2 Process

ICICI LOMBARD
Established in 2001, ICICI
Lombard General Insurance
Company is a joint venture
between ICICI Bank- India’s
second largest bank and Fairfax
Financial Holdings Limited- a
financial services company based
in Toronto.
Conditions
Bharti AXA General
Insurance
Bharti AXA General Insurance
Company Ltd. is a joint
venture between Bharti
Enterprises and AXA business
Group that operates in India.
Bharti Enterprises shares 51%
stake in the venture while
AXA Group shares 49% stake
In a share swap deal, non-life insurer ICICI Lombard General
Insurance Company will acquire the business of Bharti
AXA General Insurance Company Ltd. According to ICICI
Lombard, the shareholders of Bharti AXA General will receive two
shares of ICICI Lombard for every 115 shares of Bharti AXA
General held by them as on the date on which the Scheme of
Arrangement is approved by the Board of Directors of the
two companies. AXA and Bharti will receive a total of 35.8 million
shares of ICICI Lombard
Result

The closing of the proposed transaction is subject to various
conditions, including regulatory approvals from the Insurance
Regulatory and Development Authority of India, Competition
Commission of India, The Securities and Exchange Board of India,
Stock Exchanges, Reserve Bank of India, National Company Law
Tribunal and approval of shareholders of both ICICI Lombard and
Bharti AXA General, amongst others. Till such time regulatory
approvals are obtained both the companies - ICICI Lombard and
Bharti AXA General- will function independently
As a result of the deal, ICICI Lombard shall be able to augment its
distribution strength with Bharti AXA General's existing
distribution partnerships.
Employees of the combined business will also benefit via greater
opportunities across functions and geographies.
The proposed transaction would enable ICICI Lombard to
consolidate its market and become the third largest non-life
insurer in the country with a market share of about 8.7 per cent.
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Type- Acquisition
Process
Company 1 Company 2
ITC Sunrise Pure
ITC Limited is an Indian ITC to acquire Sunrise Foods: Diversified business entity ITC Ltd
multinational conglomerate Sunrise is a clear market on Sunday said it will fully acquire spices manufacturer Sunrise
company headquartered in leader in eastern India in the Foods Private Ltd (SFPL).
Kolkata. Established in 1910 as fast-growing spices category While the company did not disclose the value of the deal, sources
the Imperial Tobacco Company with a rich heritage and brand said it is valued around Rs 1,800 crore to Rs 2,000 crore.
of India Limited, the company legacy of over 70 years
was renamed as the India
Tobacco Company Limited in
1970 and later to I.T.C. Limited in
1974.
Conditions Result

The deal will “augment the company’s product portfolio and is

The deep consumer connect and distribution strength of SFPL in
the focus markets, together with synergies arising out of the
sourcing and supply chain capabilities of the company’s
agribusiness and its pan-India distribution network, will provide
significant value creation opportunities for the company
aligned to ITC’s aspiration to significantly scale up its spices
business and expand its footprint across the country.
ITC further said the proposed transaction is also in line with its
“philosophy of enhancing the competitiveness of agri value
chains in India whilst making a meaningful contribution to
enhancing farmer incomes.
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M&A 2
Type- Acquisition

Company 1 Company 2 Process

Deloitte
Multinational professional
services network Deloitte has
announced the acquisition of
advertising, marketing advisory
and analytics firm Spatial Access
to enhance the organization’s
advisory capabilities and enable
brands to make more efficient
A&M decisions.
Spatial Access
Spatial Access is in the
business of providing audit
and advisory services over a
wide range of marketing
spends covering media, print
and film production, PR,
events and analytics.
The acquisition is aimed at integrating knowledge-driven sector
expertise by Spatial
Access with the technology and advanced data analytics skills of
Deloitte. With this joint
proposition, brand marketers will gain deeper insights on
consumers and advertising avenues
that will further help position marketing spends as a strategic
business investment.

Conditions Result

Deloitte’s acquisition announcement comes amidst the covid-19
pandemic, which has compelled businesses to scrutinize their
marketing and advertising budgets in view of market disruptions
and changing consumer behavior. Brands can now have access to
insights on optimizing their A&M spends, by implementing
strategies based on analysis and impact-based performance. The
deal size is estimated to be in the range of Rs 10 to 15 crore, for
100 per cent control.
Deloitte’s takeover would enable advertisers and marketers across
the country to benefit from
this combined domain expertise thereby driving a new era of
better returns on investment
(ROIs), accountability, and performance through strategic
insights, business partnership
approach as well as data and tech-led decision making.
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M&A 3
Type- Acquisition

Company 1 Company 2 Process

Reliance
Reliance is expanding product
offerings to build an e-commerce
platform. Since April, Reliance
Industries has raised capital
worth Rs 1.52 lakh crore amid
the coronavirus lockdown by
selling over 33% stake in its Jio
Platforms unit to technology
giants such as Google and FB.
Future Retail
RIL and Future Retail have reportedly reached a common accord
The company is known for regarding certain terms and conditions and a deal is likely to be
having a significant announced soon. Reliance Industries might acquire Kishore
prominence in Indian retail Biyani-controlled Future Group's retail business for Rs 24,000-
and fashion sectors, with 27,000 crore.
popular supermarket chains
like Big Bazaar and Food
Bazaar, lifestyle stores like
Brand Factory, Central, etc.

Conditions
RIL keen on buying three future groups businesses. They are
willing to offer Reliance Retail shares to Future Shareholders.
There is immense pressure on Mr. Biyani to go ahead with the RIL
offer after FRL defaulted on its interest payments of Rs 100 crore.
Even if FRL makes the coupon payment within the 30-day grace
period, its weak liquidity will remain an overarching credit risk,
S&P had warned.
Result
The meeting on 22n July has been seen as a crucial one since it
came in the wake of Rs 100 crore worth interest payment on
senior secured dollar notes, whose deadline - after 30 days grace
period -- ends on August 21. The non-payment of interest will
place Future Retail Ltd in the 'default' category.
Future Group has accrued heavy debt over the years. As of
September 30, 2019, debt at Future Group's listed entities rose to
Rs 12,778 crore from Rs 10,951 crore as on March 31, 2019. The
Group had the March deadline for repayment of some of these
dues.
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M&A 5
Type- Acquisition
Process
Company 1 Company 2
Flipkart Walmart India Walmart had invested $16 billion in 2018 for a majority stake in
Flipkart
Flipkart Wholesale will continue Walmart India, which runs 28 Earlier this month, it led a $1.2-billion round in Flipkart, valuing
to onboard other brands and Best Price stores across nine the e-commerce firm at $24.9 billion
manufacturers on the platform. states, has an estimated 3,500 The plan to integrate Walmart India with Flipkart had been in the
employees.il market works for a few months, according to people in the know
Flipkart has strengthened its wholesale presence with the
acquisition of Walmart India, which operates the Best Price cash-
and-carry business.

Conditions
Flipkart, in which Walmart Inc holds a majority, has announced
the launch of Flipkart Wholesale — a new digital marketplace that
looks to transform the kirana retail ecosystem by leveraging
technology.
Following the acquisition, Walmart India employees will join the
Flipkart group, while the Best Price brand will continue serving its
1.5 million members via its omni-channel network stores and e-
commerce operations
Flipkart Wholesale will launch in August — with pilot services in
the grocery and fashion categories.
Result
Credit has become a very important aspect in the retail business.
On the ecommerce front, Flipkart has partnered with over 10
non-banking financial companies (NBFCs) to offer hassle free
credit to lakhs of sellers under its initiative — Growth capital.
The company has announced it will offer one-stop access on an
extensive selection of products to all its retailers which will be
supplemented with data-driven recommendations.
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Type- Acquisition
Company 1 PROCESS
Company 3
PUNJAB NATIONAL BANK
GOI owned and established in 1894, UNITED BANK OF INDIA
PNB is a Banking & Financial service Formed as a result of merger of 4 The amalgamation of Punjab National Bank, Oriental Bank of
bank. It is now the second largest banks in 1950: Comilla Banking Commerce & United Bank of India came into effect on April 1,
Corporation, Bengal Central Bank,
public sector bank (PSB) in India. 2020.
..................................................... Comilla Union Bank, and Hooghly
The OBC and UBI branches will not close in the near future. The
Company 2 Bank.
It had 36 regional offices, and rate of interest will remain same till the reset period for the
ORIENTAL BANK OF existing customers. The use of common technology platform,
2054 branches all over India, with
COMMERCE major presence in the Eastern Infosys' Financle, by the three banks has made the transition
Established in 1943, the bank part of India. process easier with OBC and UBI to upgrade their Finance-7
had 2390 branches and 2625 ATMs
across India.
software to Financle 10 used by PNB .
CONDITIONS RESULT
According to Swap Ratio, 1,150 equity shares of PNB will be As a result of the deal, Punjab National Bank has become the
exchanged for every 1,000 equity shares of OBC, while 121 equity second largest nationalized bank of India both in terms of
shares of PNB will be swapped for every 1,000 equity shares of business and branch network.
UBI. A Grievance Redressal Committee will address the
shareholders who hold at least 1% of the equity capital; or 100 All the customers of the OBC & UBI will be considered as the
shareholders acting collectively, of any of PNB, OBC or UBI. customers of PNB. A new logo with the distinct signages of the 3
banks will be adopted. The bank will now have a wider
Punjab National Bank will be setting aside 700-800 crore in geographical reach with around 11,000 branches, 13,000+ ATMs,
addition to 1,500 crore to harmonise the bad loans of the three workforce of over 1 Lac and a business of around Rs 18 lacs crore.
banks as per the banks involved in the merger.
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Company 1
TVS Motor
The 3rd largest 2-wheeler
manufacturer in India and
has annual revenue of over
Rs. 18,217 crore. It is the
largest company under TVS
Group in terms of size and
turnover
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M&A 7
Type- Acquisition
Process
Company 2
Norton Motorcycles
TVS Motor Company bought Norton Motorcycles in an all-cash
Founded in 1990, it is one of deal for 16 million pounds marking the entry of TVS Motors into
the top brands in this two-wheeler premium niche super bikes market.
segment and is UK’s iconic Deal involves the acquisition of certain assets of Norton
premium brand Motorcycles (UK) Ltd (in administration) through one of TVS
Motor’s overseas subsidiaries. No liabilities of the British company
should be carried out.

Conditions Result

Norton Motorcycles is a premium brand for bikes and will help

TVS acquired Norton motorcycles in the midst of Coronavirus
pandemic.
TVS Motor will retain 55 staff of Norton and will strengthen the
existing manufacturing facility for future growth
TVS Motorcycles to enter the two-wheeler segment given
customer base already exists.
The brand has a global appeal with its British heritage and an
opportunity to grow the brand exists.
Synergy exists between both the companies and Norton will be
gaining better global reach and supply chain capabilities to
expand to newer markets.
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Type- Acquisition
Process
Company 1 Company 2
Big Basket Daily Ninja
India’s first comprehensive online
megastore, bigbasket.com, DailyNinja is the online milk
brings a whopping 20000+ delivery app which delivers all The deal values Bengaluru-based DailyNinja at around Rs 48 crore
products with more than 1000 your daily needs at your in stock, people aware of the matter.
brands, to over 4 million happy doorstep. Subscribe for Bread,
customers. From household Eggs, Fruits and Vegetables
cleaning products to beauty and and many more.
makeup, bigbasket has
everything you need.

Conditions Result

Big basket, because of COVID-19 has seen a surge in It’s demand.
Bb daily has benefitted significantly from lockdowns
Big basket acquired 100% Stake in Daily ninja( a daily milk
delivery app)
Deal approximated at 15-20 million USD
Deal would help the milk delivery service unit of Bbdaily and
would help this service, grow at a rate of 150%-200% over next
two years.
Bbdaily gets access to the delivery network of Daily Ninja across
India. Daily Ninja has a network of around 2000 milk men across
India. This would also help Bbdaily to improve its supply chain
abilities across India
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M&A 9
Type- Acquisition
Process
Company 1 Company 2
Uber Eats Zomato Online food delivery and restaurant discovery platform Zomato
Uber Eats is the easy way to get Zomato is an Indian has acquired the Indian operations of Uber Eats, the food delivery
the food you love delivered. restaurant aggregator and business run by Uber, for around $350 million (Rs 2,485 crore),
Browse Menus & Order From food delivery start-up two people in the know of the deal said.
Local Restaurants. Track your founded in 2008. Zomato The all-stock transaction will give the US-based ride-hailing company
order online provides information, menus about 10% shareholding in Gurgaon-based Zomato
and user-reviews of
restaurants as well as food
delivery options from partner
restaurants in select cities.

Conditions Result

The transaction, which has been in the works for more than a
year, marks the first big consolidation move in the hotly
contested and cash-intensive online food-delivery market, led by
Swiggy and Zomato.
With the acquisition going through, the combined entity of
Zomato and Uber Eats India is expected to corner more than a
50-55% market in terms of the number and value of orders,
pulling it ahead of Swiggy.
For Zomato, buying the distant third player helps it consolidate
the market and puts it ahead of its arch-rival Swiggy. It is one less
competition for the company to deal with
The Uber Eats buyout comes on the back of Zomato’s latest
fundraising led by existing investor Ant Financial, an Alibaba
affiliate, which pumped in $150 million at a $3 billion valuation.
There had been talks of Uber also participating in the recent
funding with primary capital of about $100-200 million.
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M&A 10
Type- Acquisition
Process
Company 1 Company 2
Ebix Yatra
Ebix Inc., a supplier of on-
demand software and e- Yatra.com is an Indian online Ebix first offered to buy Yatra in March for $337 million, in cash or
commerce services. travel agency and travel by stock.
Ebix makes software for the search engine. It is based in The deal as a strategic fit for both companies, with Ebix’s
insurance, financial and Gurugram, Haryana. It was expertise in the B2B (business-to-business) segment, where we
healthcare industries. founded by Dhruv Shringi, are also leaders in corporate travel bookings.
Manish Amin and Sabina Yatra will continue to be independently run and will retain its
Chopra in August 2006. brand and status in India.

Conditions Result

The acquisition of Yatra would lend itself to significant synergies
and the emergence of EbixCash as India’s largest and most
profitable travel services company, besides being the largest
enterprise financial exchange in the country.
The deal marks Ebix’s biggest acquisition till date in India. Ebix
had entered India with the purchase of a 80% stake in ItzCash for
₹800 crore from Essel Group and other shareholders in May 2017.
Since then, the company has acquired a dozen companies across
sectors, such as remittance, travel, foreign exchange and
education. In August 2018, it spent ₹1,200 crore to acquire
Centrum group’s forex business Centrum Direct Ltd.
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