merger and the joint venture of companies difference

1. PRESENTED BY: SWETA KUMARI
180613101061
SEC-B
DIFFERNCE BETWEEN MERGER
AND JOINT VENTURE

2. J O I N T V E N T U R E I S T H E C O O P E R A T I O N O F
T W O O R M O R E I N D I V I D U A L S O R B U S I N E S S
I N W H I C H E A C H A G R E E T O P R O F I T , L O S S
A N D C O N T R O L I N A S P E C I F I C E N T E R P R I S E .
E X A M P L E : T A T A S O N S A N D S I N G A P O R E
A I R L I N E S , V I S T A R A
M A R U T I S U Z U K I
Meaning of Joint Venture

3. Meaning of Merger
 Mergers happen when two companies agree to
legally combine into one company, melding their
management.
 Example: company A+company B=company C.
 Vodafone and idea
Bank of Baroda ,Dena bank , and Vijaya bank

4. MERGER JOINT VENTURE
 Two companies come
together permanently
for mutual gains or to
reduce competition
 Mergers have a larger
scope.
 Two companies come
together temporarily for
mutual gains for a
particular/job after the
project is completed the
joint venture is closed.
 Joint ventures, on the other
hand, have a much-limited
scope.
DIFFERNCE

5. MERGER JOINT VENTURE
 Occurs when two firms carry out
business operations as one single
firm rather two separate firms.
 Requires a lot of commitment to
efficiency
 Mergers are formed for long term
basis.
 In a merger, the ownership of the
entity created is the same to the
owners of the original firms.
 Occurs when two firms continue
to carry out the business
operations but
 joint ventures require less
commitment in comparison to
mergers.
 joint ventures are formed for
short projects hence are short
term based.
 a joint venture is owned by the
original firms that led to its
creation.

7.  Two companies come
together permanently
for mutual gains or to
reduce competition
 Two comapanies come
together temporarily
for mutual gains for a
particular/job after the
project is completed
the joint venture is
closed.