Motilal Nehru National Institute of technology
School Of Management studies

Presented ByUjjwal Mishra 2012MB01
Satish Aarya 2012MB02
Nidhi Kumari 2012MB04
Tarun Talreja 2012MB05 1
Table of Content
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Merger and Acquisition
Types of M & A
Reasons for M & A
List Of Merged Companies
List Of Acquired Companies

2
Merger
A merger refers to the process whereby at least two
companies combine to form one single company.

ACQUISITION
When a smaller company gets bought by a larger
one, who then acquires all of their stock and swallows it
as part of their business.

3
Types of Merger
 Horizontal Merger: It refers to the
merger of two companies who are direct
competitors of one another. They serve the
same market and sell the same product.
 Vertical Merger: It is effected either
between a company and a customer or between
a company and a supplier.

4
Conglomeration: It refers to the merger
of companies, which do not either sell any
related products or cater to any related market.

Product-Extension Merger: It is
executed among companies, which sell
different products of a related category. They
also seek to serve a common market.

Market-Extension

Merger: It

occurs between two companies that sell
identical products in different markets. It
basically expands the market base of the
product.
5
Types of Acquisition
Asset Acquisition: If the assets to be
acquired are not held in a separate legal entity, they
must be purchased in an asset sale, rather than a stock
sale, unless they can be organized into a separate
legal entity prior to sale.

Stock Acquisition: In a stock
purchase, all of the assets and liabilities of the seller
and sold upon transfer of the seller’s stock to the
acquirer. As such, no tedious valuation of the seller’s
individual assets and liabilities is required and the
transaction is mechanically simple.
6
Reasons for Merger & Acquisition
Revenues: By combining the two
companies, we will realize higher revenues then if
the two companies operate separately.
Expenses: By combining the two
companies, we will realize lower expenses then if
the two companies operate separately.
Cost of Capital: By combining the two
companies, we will experience a lower overall cost
of capital.

Positioning: Taking advantage of future
opportunities that can be exploited when the two
companies are combined
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 Gap

Filling: One company may have a major

weakness (such as poor distribution) whereas the
other company has some significant strength. By
combining the two companies, each company fillsin strategic gaps that are essential for long-term
survival.

 Organizational Competencies:
Acquiring human resources and intellectual capital
can help improve innovative thinking and
development within the company.

 Broader Market Access: Acquiring a
foreign company can give a company quick access
to emerging global markets.
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List Of Merged Companies
IBP-IOL

Tata Steel

- Corus
Satyam-Tech Mahendra
Air India - Indian Airlines
iGate - Patni Computers
Global Trust Bank - Oriental bank of Commerce.
Mahindra Logisoft Business Solutions Ltd. - Tech
Mahindra Ltd.
Fortis Healthcare (India) Ltd. - Fortis Healthcare
International Pvt. ltd.
Pipetel Communications Pvt. Ltd. - Net 4 India Ltd.
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List Of Acquired Companies


Aditya Birla - Columbian Chemicals
 Mahindra & Mahindra - Ssangyong
 The Vedanta - Cairn acquisition
 GVK Power - Hancock Coal
 Essar Energy’s - Stanlow Refinery
 Vodafone - Hutch Essar
 ONGC - Imperial Energy
 HDFC Bank - Centurion Bank of Punjab
 Tata Motors - Jaguar Land Rover

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Acquisition Of Tata Motors
and Jaguar & Land Rovers

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Tata Motors Profile


Headquarter- Mumbai
 Chairman-Ratan Tata
 Parent- Tata Motors
 Subsidiaries- jaguar & land rover
 Products- automobiles and engines
 Total revenue- Rs.123,133 crores
 Total Profit- Rs.9,274 crores
 India’s Largest automobile company
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Jaguar and Land Rover’s Profile
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Headquartered- Coventry, England
Chairman- Ratan Tata
Parent Company- Tata Motors
Luxury & Sports car manufacturer Company
Net revenue- 9,906 million
Net Profit- 1,043 million
Considered as a British icons
Jaguar manufactured luxury cars
Land Rover manufacture SUVs.
13
Features Of Acquisition


Acquisition of British Icons
 The Deal
 The Benefits
 The Road Ahead

14

Merger & acquisition

  • 1.
    Motilal Nehru NationalInstitute of technology School Of Management studies Presented ByUjjwal Mishra 2012MB01 Satish Aarya 2012MB02 Nidhi Kumari 2012MB04 Tarun Talreja 2012MB05 1
  • 2.
    Table of Content      Mergerand Acquisition Types of M & A Reasons for M & A List Of Merged Companies List Of Acquired Companies 2
  • 3.
    Merger A merger refersto the process whereby at least two companies combine to form one single company. ACQUISITION When a smaller company gets bought by a larger one, who then acquires all of their stock and swallows it as part of their business. 3
  • 4.
    Types of Merger Horizontal Merger: It refers to the merger of two companies who are direct competitors of one another. They serve the same market and sell the same product.  Vertical Merger: It is effected either between a company and a customer or between a company and a supplier. 4
  • 5.
    Conglomeration: It refersto the merger of companies, which do not either sell any related products or cater to any related market. Product-Extension Merger: It is executed among companies, which sell different products of a related category. They also seek to serve a common market. Market-Extension Merger: It occurs between two companies that sell identical products in different markets. It basically expands the market base of the product. 5
  • 6.
    Types of Acquisition AssetAcquisition: If the assets to be acquired are not held in a separate legal entity, they must be purchased in an asset sale, rather than a stock sale, unless they can be organized into a separate legal entity prior to sale. Stock Acquisition: In a stock purchase, all of the assets and liabilities of the seller and sold upon transfer of the seller’s stock to the acquirer. As such, no tedious valuation of the seller’s individual assets and liabilities is required and the transaction is mechanically simple. 6
  • 7.
    Reasons for Merger& Acquisition Revenues: By combining the two companies, we will realize higher revenues then if the two companies operate separately. Expenses: By combining the two companies, we will realize lower expenses then if the two companies operate separately. Cost of Capital: By combining the two companies, we will experience a lower overall cost of capital. Positioning: Taking advantage of future opportunities that can be exploited when the two companies are combined 7
  • 8.
     Gap Filling: Onecompany may have a major weakness (such as poor distribution) whereas the other company has some significant strength. By combining the two companies, each company fillsin strategic gaps that are essential for long-term survival.  Organizational Competencies: Acquiring human resources and intellectual capital can help improve innovative thinking and development within the company.  Broader Market Access: Acquiring a foreign company can give a company quick access to emerging global markets. 8
  • 9.
    List Of MergedCompanies IBP-IOL Tata Steel - Corus Satyam-Tech Mahendra Air India - Indian Airlines iGate - Patni Computers Global Trust Bank - Oriental bank of Commerce. Mahindra Logisoft Business Solutions Ltd. - Tech Mahindra Ltd. Fortis Healthcare (India) Ltd. - Fortis Healthcare International Pvt. ltd. Pipetel Communications Pvt. Ltd. - Net 4 India Ltd. 9
  • 10.
    List Of AcquiredCompanies  Aditya Birla - Columbian Chemicals  Mahindra & Mahindra - Ssangyong  The Vedanta - Cairn acquisition  GVK Power - Hancock Coal  Essar Energy’s - Stanlow Refinery  Vodafone - Hutch Essar  ONGC - Imperial Energy  HDFC Bank - Centurion Bank of Punjab  Tata Motors - Jaguar Land Rover 10
  • 11.
    Acquisition Of TataMotors and Jaguar & Land Rovers 11
  • 12.
    Tata Motors Profile  Headquarter-Mumbai  Chairman-Ratan Tata  Parent- Tata Motors  Subsidiaries- jaguar & land rover  Products- automobiles and engines  Total revenue- Rs.123,133 crores  Total Profit- Rs.9,274 crores  India’s Largest automobile company 12
  • 13.
    Jaguar and LandRover’s Profile          Headquartered- Coventry, England Chairman- Ratan Tata Parent Company- Tata Motors Luxury & Sports car manufacturer Company Net revenue- 9,906 million Net Profit- 1,043 million Considered as a British icons Jaguar manufactured luxury cars Land Rover manufacture SUVs. 13
  • 14.
    Features Of Acquisition  Acquisitionof British Icons  The Deal  The Benefits  The Road Ahead 14