Merger and acquisition 2019 {Examples: (BSNL and MTNL), (LIC and IDBI) and mega merger}
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What is Merger? A merger is a combination of two or more companies which forms a new legal entity under the banner of one corporate name. What is Acquisition? Acquisition essentially means ‘to acquire’ or ‘to takeover’. Here a bigger company will take over the shares and assets of the smaller company.
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Merger and acquisition 2019 {Examples: (BSNL and MTNL), (LIC and IDBI) and mega merger}
- 1. Contemporary Issue in Merger And Acquisition Presented by:- 19005: Amit Singh 19026: Mayur Fofandi 19031: Nitish Kumar 19032: Omkar Mishra
- 2. What is Merger? A merger is a combination of two or more companies which forms a new legal entity under the banner of one corporate name. What is Acquisition? Acquisition essentially means ‘to acquire’ or ‘to takeover’. Here a bigger company will take over the shares and assets of the smaller company.
- 3. Merger of BSNL and MTNL • BSNL and MTNL
- 4. Types of Mergers and Acquisition Merger Acquisition • Horizontal Merger • Vertical Merger • Market Extension merger • Product extension merger • Conglomerate Merger • Friendly Acquisition • Reverse Acquisition • Hostile Acquisition
- 5. Merger examples • Horizontal Merger: Coca-Cola and the Pepsi beverage division • Vertical Merger: Time Warner inc. With the Turner corporation • Market Extension merger: Amazon with Alibaba • Product extension merger: Mobilink Telecom Inc. by Broadcom • Conglomerate Merger: Walt Disney Company and the American Broadcasting Company. Acquisition examples • Friendly Acquisition: Johnson and Johnson over Crucell • Reverse Acquisition: Dell company over EMC corp. • Hostile Acquisition: Tata over Jaguar
- 6. Benefits of M&A • Economies of large scale business • Good option to overcome the current situation • Benefits in tax gains • Greater value generation • Competitive edge
- 7. Mega Merger of Banks PNB with 7.7% market share but still SBI is leading with 22.5% market share.
- 8. Problems of M&A • Integration difficulties • Large or extraordinary debt • Managers overly focused on acquisitions • Overly diversified Impact of M&A • Employees • Top level management • Shareholders of the acquired firm • Shareholders of the acquiring firm
- 9. Acquisition of LIC and IDBI Bank Jan Dec
- 10. How to prevent the failure of M&A • Continuous communication- employees, stakeholders, customers, suppliers and government leaders. • Transparency in managers operations • Capacity to meet new culture higher management professionals must be ready to greet a new or modified culture. • Talent management by the management