m

 

 
 


2 Merger refers to the process whereby at
least two companies combine to form
one single company and share control
of the combined businesses.
2 A merger involves the mutual decision
of two companies to combine and
become one entity.
2 The assets and liabilities of the smaller
firms are merged into those of larger
firm.
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2 V











  
 



  


   
 


2 Ú
 MERATE MERER
Merger of firms operating in different
industries.
Eg: eneral Electric buying
Ú
television.

2 MARKET-EXTE

MERER
Two companies that sell the same products
in different markets.

2 PR ÚT-EXTE

MERER
Two companies selling different but related
products in the same market.
Õ
Y
2 Acquisition may be defined as an act of
acquiring effective control over assets or
management of a company by another
company without any combination of
companies.
2 Reverse takeover occurs when the target
firm is larger than the bidding firm.
2 The bidder may purchase the share or
the assets of the target company.
 
 
Õ
2 EÚ
ME ARE ÚAE : The combination of two
or more companies will result in large volume of
operations and it will result in economies of scale.
2 
ÚREAE REVE
E/ 
ÚREAE MARKET 
ARE :
The company will be absorbing the major competitor
and thus increasing its power (by capturing increased
market share) to set prices.
2 AÚR

EW TEÚ

  : y buying a smaller
company with unique technologies, a large company
can maintain or develop a competitive edge.
2 EXPA

A
 R WT
: t is less time consuming
and more cost effective if allowed by the government.
Õ
 Õ
YÕYÕ 

2 Tata acquired Úorus, which is four times larger
than its size and the largest steel producer in K.

2 n January 30, 2007, Tata teel purchased a

100% stake in the Úorus roup at 608 pence per
share in an all cash deal, cumulatively valued at
 12.04 illion.

2 The deal is the largest ndian takeover of a foreign

company and made Tata teel the world's fifth-
largest steel group.
Õ  Õ

2 n ebruary 11, 2007, Vodafone agreed
to buy out the controlling interest of 67%
held by i Ka hing
oldings in
utch-
Essar for $11.1 billion.
2 Vodafone Essar is owned by Vodafone
52%, Essar roup 33% and other ndian
nationals 15%.
2 This is the second-largest M&A deal ever
involving an ndian company.
 ¦Õ  
2
indalco ndustries td. ( Aluminium and
Úopper Major), Aditya irla roup
flagship, acquired Úanadian company

ovelis nc in a $6-billion, all-cash deal
in ebruary 2007.
2
ovelis shareholders received  $44.93
in cash for each outstanding common
share.
2
indalco has become the world's largest
aluminium rolling company with its
acquisition of
ovelis

ÕÕ Õ ¦
Õ 
2 n June 2008, aiichi ankyo acquired a
majority stake of more than 50 per cent in
domestic major Ranbaxy for over $2.4
billion.
2 n
ovember 2008, aiichi completed the
takeover of the company from the founding
ingh family in a deal worth $4.6 billion by
acquiring a 63.92% stake in Ranbaxy.
2 The deal created the 15th biggest drugmaker
globally.
 

Õ 

2 The il and
atural as Úorp took
control of mperial Energy Plc for
$2.8 billion, in January 2009
2 97% of ondon-listed firm's total
shareholders accepted its takeover
offer.
2 ffer of 12.50 pounds per share.
2
Ú Videsh td.( V)·s biggest
overseas acquisition.
 YY  YÕYÕY 
2 Japanese telecom giant
TT oÚoMo picked
up a 26 per cent equity stake in Tata
Teleservices for about Rs 13,070 crore ($2.7
billion) in
ovember 2008.
2 With a subscriber base of 25 million in 20
circles oÚoMo paid Rs 20,107 per
subscriber to acquire the stake.
2  Ú M is preparing to acquire roughly
12 percent of the common shares of Tata
Teleservices (Maharashtra) imited (TTM)
for about 5.7 billion ndian rupees.
¦ Õ Y

Õ
Õ
2
 Ú ank approved the acquisition of
Úenturion ank of Punjab for Rs 9,510
crore ($2.4 billion) in one of the largest
mergers in the financial sector in ndia in
ebruary, 2008.
2 ÚoP shareholders got one share of

 Ú ank for every 29 shares held by
them.
2 Post-acquisition,
 Ú ank became the
second-largest private sector bank in
ndia.
  
2 Merger and acquisition activity in the country
more than doubled in the first month of 2010 as
deals worth nearly $3 billion (about Rs13,950
crore) were announced.
2 The M&A deal value during January 2010 stood
at $2.8 billion, a whopping 126% rise over the
same period last year.
2 Telecom, logistics and banking, finance and
insurance were the most targeted sectors for
investments with deals worth $2,180 million,
$164 million and $117 million respectively.
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