Beruflich Dokumente
Kultur Dokumente
1.Introduction
What is merger?
What is acquisition?
What is Takeover?
7.Conclusion
Important tools of corporate growth
Alternatively way to achieve growth is
resort to external arrangements like M&A
Daily transaction now a days
Important area of capital market activity in
restructuring a corporation
Restructuring the corporation to meet
global competition
Main objective –gain profits
M&A has a great scope in different sectors
India is one of the leading nations in the
strategy.
Merger is defined as combination of two or
more companies into a single company
where one survives and the others lose
their corporate existence.
Merger is the fusion of two or more existing
companies
• An acquisition, also known as a takeover or a
buyout, is the buying of one company (the ‘target’)
by another. An acquisition may be friendly or
hostile. In the former case, the companies
cooperate in negotiations; in the latter case, the
takeover target is unwilling to be bought or the
target's board has no prior knowledge of the offer.
Acquisition usually refers to a purchase of a smaller
firm by a larger one.
Increased market power
Learning and Developing new
capabilities
Overcoming entry barriers
Cost of new product development
Increase speed to market
Lower risk than developing new
products
W hen one company takes over another and
clearly establishes itself as the new owner, the
purchase is called an acquisition. From a legal
point of view, the target company ceases to exist,
the buyer "swallows" the business and the buyer's
stock continues to be traded
In the pure sense of the term, a merger
happens when two firms, often of about the same
size, agree to go forward as a single new
company rather than remain separately owned
and operated. This kind of action is more precisely
referred to as a "merger of equals". Both
companies' stocks are surrendered and new
company stock is issued in its place.
In 2007, there were a total of 676 M&A deals
and 405 private equity deals, in 2007, the total
value of M&A and PE deals was USD 70 billion,
Total M&A deal value was close to USD 51
billion, Private equity deals value increased to
USD 19 billion.
In year 2008..
• M&A deals in India in 2008 totaled worth USD
19.8 bn
• Less compared to last year which stood at 33.1
bn $.
• Decline of M&A activity was in line with the
global activity.
• Cross border M&A totaled 8.2 bn $ compared
to 18.7 bn $.
Acquirer Target Country Deal Industry
Company targeted value ($
ml)
Tata Corus UK 12,000 Steel
Steel Group plc
Hidalgo Novelist Canada 5,982 Steel
Videocon Daewoo Korea 729 Electronics
Electronics
Corp.
Dr. Beta harm Germany 597 Pharmaceu
Reddy’s tical
Labs
Suzlon Hansen Belgium 565 Energy
Energy Group
HPCL Kenya Kenya 500 Oil and
Petroleum Gas
Refinery
Ltd.