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Mergers and acquisitions- tata motors and jaguar
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Mergers and acquisitions- tata motors and jaguar

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this ppt is all about the merger between Tata and jaguar... …

this ppt is all about the merger between Tata and jaguar...
when this was happen ?
where?
n how?

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  • 1. TATA MOTORS AND JAGUAR
  • 2. Acquisition •When one company takes over another and clearly established itself as the new owner, the purchase is called an acquisition. •Acquisition is generally considered negative in nature
  • 3. SYNERGIES RELATED TO ACQUISITION Staff reductions Acquiring new technology Improved market reach and industry visibility
  • 4. Takeovers A corporate action where an acquiring company makes a bid for an acquiree . If the target company is publicly traded, the acquiring company will make an offer for the outstanding shares.
  • 5. Takeover might be : Takeover Friendly Hostile Takeover Target companysA takeover attempt that is management and board of strongly resisted by the directors agree to a merger or target firm acquisition by another company.
  • 6. WHY SHOULD FIRMS TAKEOVER? To gain opportunities of market growth more quickly. To seek to gain a more dominant position in a national or global market To acquire the skills or strengths of another firm. To acquire a speedy access to revenue To diversify its product or service range to protect itself against downturns in its core markets
  • 7. Major M&A Deals Undertaken Abroad by India Inc. USD 12.1 Tata Steel buys Corus Plc billion Hindalco acquired Novelis USD 6 Inc. billion USD 2.3 Tata buys Jaguar and Land Rover billion USD 1.58 Essar Steel acquired Algoma Steel billion Suzlon Energy Ltd. acquires USD 1.6 REpower billion 7
  • 8. THE DEAL………………
  • 9. •Location: Dearborn,Michigan•Founded: 1903 by HenryFord•Competitors: GeneralMotors, Toyota•Brand names: Lincoln,Mercury, Volvo, Mazda,Jaguar and Land Rover Henry Ford and his Model T•CEO: Alan Mulally
  • 10. Jaguar: The ups and downs 1922 - Founded in in Blackpool as Swallow Sidecar company 1960 - Jaguar name first appeared in 1935 1975 - Nationalized in due to financial difficulties 1984 - Floated off as a separate co in the stock market 1990 - Taken over by Ford
  • 11. Jaguar: The ups and downs A statement of ultra luxury Holds Royal warrants Rarely advertised Ford’s formula one entry since 1990s
  • 12. Why acquire Jaguar Long term strategic commitment to automotive sector Opportunity to participate in two fast growing auto segments (premium and small cars) and to build a comprehensive product portfolio with a global footprint immediately Increased business diversity across markets and product segments Unique opportunity to move into premium segment with access to world class iconic brands. Jaguar offers a range of “Performance/Luxury” vehicles to broaden the brand portfolio. Sharing of best practices between Jaguar, Land Rover and Tata Motors in the future
  • 13. The Deal Process July 2007- Announcement from Ford that it plans to sell Land Rover and Jaguar. August 2007 - Major bidders are identified
  • 14. The Deal ProcessLikely buyers Tata Motors M&M Ceribrus capital Management TPG Capital Apollo Management
  • 15. The Deal Process India’s Tata Motors and M&M arrive as top bidders ($ 2.05b & $ 1.9b) Jan 2008 – Ford announces Tata as the preferred bidders March 2008 - Ford agreed to sell their Jaguar Land Rover operations to Tata Motors. June 2008 – The acquisition is complete
  • 16. TATA MOTORS – A SNAPSHOT TATA GROUP – 150 YEAR OLD Previously Tata Engineering and Locomotive Company, Telco Tata Motors’s break-even point for capacity utilization is one of the best in the industry worldwide listed on the New York Stock Exchange in 2004
  • 17. Ratan tata says• We have enormous respect for the two brands and will endeavor to preserve and build on their heritage and competitiveness, keeping their identities intact, he said in a statement.
  • 18. Why acquire JLR?Is TATA catching a falling knife…or Long term strategic commitment to automotive sector. Opportunity to participate in two fast growing auto segments. Increased business diversity across markets and products. Land rover provides a natural fit for TML’s suv segment. Jaguar offers a range of “performance/luxury” vehicles to broaden the brand portfolio. Benefits from component sourcing,design services and low cost engineering.
  • 19. Tata and the dream… NEED FOR GROWTH In the past few years, the Tata group has led the growing appetite among Indian companies to acquire businesses overseas in Europe, the United States, Australia and Africa - some even several times larger - in a bid to consolidate operations and emerge as the new age multinationals. Tata Motors is Indias largest automobile company, with revenues of $7.2 billion in 2006-07. With over 4 million Tata vehicles plying in India, it is the leader in commercial vehicles and the second largest in passenger vehicles.
  • 20. Result ACTUAL 2.3 BILLION $ VALUATION 2.80 BILLION $
  • 21. by- AVI