Top 05 Mergers & Acquisitions in India for 2010 Tata Chemicals buys British salt

Tata Chemicals bought British Salt; a UK based white salt producing company for about US $ 13 billion. The acquisition gives Tata access to very strong brine supplies and also access to British Salts facilities as it produces about 800,000 tons of pure white salt every year

Reliance Power and Reliance Natural Resources merger

This deal was valued at US $11 billion and turned out to be one of the biggest deals of the year. It eased out the path for Reliance power to get natural gas for its power projects

Ariels acquisition of Zain in Africa

Airtel acquired Zain at about US $ 10.7 billion to become the third biggest telecom major in the world. Since Zain is one of the biggest players in Africa covering over 15 countries, Airtels acquisition gave it the opportunity to establish its base in one of the most important markets in the coming decade

Abbotts acquisition of Piramal healthcare solutions

Abbott acquired Piramal healthcare solutions at US $ 3.72 billion which was 9 times its sales. Though the valuation of this deal made Piramals take this move, Abbott benefited greatly by moving to leadership position in the Indian market

ICICI Bank buys Bank of Rajasthan

This merger between the two for a price of Rs 3000 cr would help ICICI improve its market share in northern as well as western India

TABLE -1. SHOWING MARKET CAPITAILISATION

RATIOS

PRE MERGER ANALYSIS 2009 2010 2011

POST MERGER 2012

Abbott Airtel Reliance Power Tata Chemicals ICICI Bank

7951070412.72 118782355234 245312480000

12082074540 11869180315 357962080000

28538875051.1 135757903401 365788491166

32303188900.4 128318541943 328620565491

33300442353.3 380286398336

79852873533.7 10603712365

87156168516 124439013857

88341186596.7 102530776555

TABLE -2. SHOWING DEBT EQUITY RATIO

RATIOS

PRE MERGER ANALYSIS 2009 .0593 2010 .0631 2.656 .472 2011 .0272 .1693 .245

POST MERGER 2012 .0454 .1665 .256

Abbott Airtel Reliance Power Tata Chemicals ICICI Bank

4.0635 .053

.952 .245

.687 .259

.545 .269

.439 .295

TABLE -3. SHOWING EARNING PER SHARE

RATIOS

PRE MERGER ANALYSIS 2009 56.68 2010 44.56 24.83 1.14 2011 56.66 20.32 1.06

POST MERGER 2012 68.10 15.09 1.11

Abbott Airtel Reliance Power Tata Chemicals ICICI Bank

20.40 1.04

19.25 33.76

18.38 36.14

16.32 45.27

23.03 56.11

TABLE -4. SHOWING PRICE EARNING RATIO

RATIOS

PRE MERGER ANALYSIS 2009 14.87 2010 19.82 12.58 131 2011 23.70 17.59

POST MERGER 2012 22.32 22.39 105.54

Abbott Airtel Reliance Power Tata Chemicals ICICI Bank

30.67 98.41

123.01

7.35 9.85

17.85 26.35

20.95 24.65

15.05 15.86

TABLE -5. SHOWING RETURN ON INVESTMENT

RATIOS

PRE MERGER ANALYSIS 2009 64 2010 30.82 22.33 2.05 2011 33.10 19.78 1.59

POST MERGER 2012 31.62 14.07 1.93

Abbott Airtel Reliance Power Tata Chemicals ICICI Bank

18.98 1.85

6.88 10.20

10.66 9.13

8.64 8.03

9.38 8.66

TABLE -6. SHOWING NET PROFIT RATIO

RATIOS

PRE MERGER ANALYSIS 2009 24.14 2010 22.60 26.47 132.12 2011 8.07 20.29 58.22

POST MERGER 2012 8.76 13.77 58.11

Abbott Airtel Reliance Power Tata Chemicals ICICI Bank

22.76 93.01

5.40 9.71

8.03 12.12

6.32 15.79

7.20 15.07