This document discusses mergers, including what they are, their advantages and disadvantages, types of mergers, and an example case study of Maruti Suzuki. A merger occurs when two or more existing companies combine into one company. Advantages include not requiring cash, being tax-free, and allowing shareholders to own a larger company. Disadvantages include potential diseconomies of scale and clashes in company culture. The procedure for a merger involves multiple stages including applications to courts and creditor approvals. Maruti Suzuki was formed through the merger of Maruti Udyog Limited and Suzuki Motor Corporation of Japan.

1. MERGERS
PRESENTED BY: SAIFI AFAQ

2. INTRODUCTION
What Is Merger
Advantages of Merger
Disadvantages of Merger
Procedure for Merger
Types Of Mergers
Example (Case Study)

3. What Is Merger
 Arrangement where by two or more existing companies
combine in to one company.
 Strategic tools in the hands of management to achieve greater
efficiency by exploiting synergies.

4. Advantages of
Merger
 Does not require cash.
 Accomplished tax-free for both parties.
 Allows shareholders of smaller entities to own a smaller
piece of a larger pie, increasing their overall net worth.
 Allows the acquirer to avoid many of the costly and time-
consuming aspects.

5. Disadvantages of
Merger
 Diseconomies of scale if business become too large, which leads
to higher unit costs.
 Clashes of culture between different types of businesses.
 Effect on motivation of worker
 May be a conflict of objectives between different businesses,
meaning decisions.

6. Procedure for
Merger
Stage VII Filing of the order of the court with the Registrar
Stage VI Sanction of the Scheme
Stage V Court to be satisfied that scheme is bonafide
Stage IV Approval of the scheme by creditors conditions
Stage III Notice of compromise and arrangement
Stage II Direction by the court
Stage I Application to the court

7. Reason for Merger
Industry Consolidation
Improve Competitive Position
Synergies
Acquire Resources and Skills

8. Types Of Mergers
Horizontal Mergers
Vertical Mergers
Market Extension Mergers
Product Extension Mergers
Conglomerate Mergers

9. MARUTI SUZUKI
 Maruti Suzuki India Limited, formerly known as
Maruti Udyog Limited, is an automobile
manufacturer in India. It merged with Japanese
automobile and motorcycle manufacturer
Suzuki Motor Corporation
Founded: 1982
HQ: Delhi
Key People : R. C. Bhargava (Chairman)
Kenichi Ayukawa (MD & CEO)
Number of employees:12,900 (2015)
Parent Company :Suzuki Motor Corporation

10. Milestone & Facts
 Maruti Care on wheels - Maruti launches India's first 24 hour- On-road
service in May 1996.
 The first car company in India, to start a customer care centre in 2000.
 Ranks 91 in Forbes Magazine's list of the World's 200
 Most Reputable Companies. In the automotive sector, Ranked 7th in the
world, in the year 2005
 Launched A-star, world's 5th strategic model in Nov 2008.
 Rolls out the 1 millionth car in 1 year on 23rd March 2010.
 Maruti Udyog Limited is renamed Maruti Suzuki India Limited in 2007.

11. Business Mix
 Maruti Finance
 Maruti Insurance
 Maruti Auto Card
 Maruti Genuine Accessories
 Maruti Genuine Parts
 Maruti Driving School
 Institutional Customers
 N2N leasing and fleet management
 Maruti True Value

12. THINKING TASK FOR CLASS
• WHAT ABOUT IF VGTU
AND VU MERGED
• YOUR OPNIONS

13. Conclusion

14. THANK YOU • YOUR QUESTION ARE
WELCOME