Mergers and acquisitions have become more popular in India since 1988. A merger occurs when two companies combine to form a single new entity, while an acquisition happens when one company takes over another. There are several types of mergers and acquisitions including horizontal, vertical, and conglomerate transactions. Companies pursue mergers and acquisitions to achieve economies of scale, eliminate competition, gain access to new markets, and diversify their business portfolio. However, major integrations can also lead to increased complexity, culture clashes, and difficulties achieving synergies. Regulatory approvals from agencies like SEBI and the Competition Commission of India are required for large transactions.

1. MERGER AND ACQUISITION
CATALYST TO ECONOMIC GROWTH

2. HISTORY
The concept of merger and acquisition in India was not
popular until the year 1988.
In the year 1988 INDIA witnessed one of the oldest
business acquisitions or company mergers.
It is the well-known ineffective unfriendly takeover bid by
Swaraj Paul to overpower DCM Ltd. and Escorts Ltd.

3. WHAT IS A MERGER
A merger is a combination of two or more companies
where all the companies loses their identities and a new
company is being formed.

4. 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

5. ACQUISITION VS MERGER

6. TYPES OF M/A
MERGER /
ACQUSITION
HORIZONTAL VERTICAL CONGLOMERATE

7. ACQUSITION
FRIENDLY HOSTILE
TYPES OF M/A

8. Differences
Aspect
Meaning
Decision Type
Expensive
Time
Consumption
Merger
Merging Of Two Or More
Organizations Into New One
It Is The Mutual Decision
Higher Legal Cost
Time Consuming, Has To
Maintain Legal Issues
Acquisition
Buying Of One Or More
Organizations By Another
It Can Be Friendly Takeover Or
Hostile Takeover
Less Expensive Than Merger
It Is Faster And Easier Transaction

9. MOTIVES FOR M/A
Economies Of
Large Scale
Business
Elimination Of
Competition
Desire To Enjoy
Monopoly
Power
Adoption Of
Modern
Technology

10. BENEFITS OF M/A
ECONOMIES
OF SCALE

11. BENEFITS OF M/A
MARKET LEADERSHIP
eg: HP &
COMPAQ

12. BENEFITS OF M/A
MARKET ACCESS / ENTRY

13. BENEFITS OF M/A
PORTFOLIO DIVERSIFICATION

14. BENEFITS OF M/A
FORWARD INTEGRATION

15. BENEFITS OF M/A
BACKWARD INTEGRATION

16. PROBLEMS
Increased Business Complexity
Finance By Taking Huge Debt
Employees May Not Be Resistant To Change
Clash Of Corporate Cultures
Inability To Achieve Synergy
Inadequate Valuation Of Target

17. REGULATORY FRAMWORK
TRANSACTION
STRUCTURE
• COMPANIES ACT
2013
• COMPETITION
ACT 2002
LISTED
COMPANIES
• SEBI
REGULATIONS
• STOCK EXCHANGE
–LISTING
AGREEMENTS
TRANS-BORDER
TRANSACTIONS
• FOREIGN
EXCHANGE
MANAGEMENT
ACT 1999

18. LEGAL PROCEDURE
Chapter XV of
companies act
2013
Examination of
object clause
Pass a board
resolution
Intimation and
approval from
share holders and
creditors
Application to NCLT
And petition for
approval
Intimation to stock
exchanges
Filing order with
ROC
Transfer of assets
and liabilities
Issuance of cash/
cash equivalents

19. WHAT HAPPENS WHEN COCA COLA
MERGERS WITH PEPSICO?

20. ROLE OF CCI
IN INDIA INVOLVING FOREIGN ENTERPRISE
FOR THE PARTIES FOR THE GROUP FOR THE PARTIES FOR THE GROUP
ASSETS
1500 CR
ASSETS
6000 CR
ASSETS
750 M $
ASSETS
3 BN $
TURNOVER
4500 CR
TURNOVER
18000 CR
TURNOVER
2250 M $
TURNOVER
9 BN $

21. • Mergers and acquisitions plays an important role in the
corporate restructuring and development of the country.
• It represents market and financial power.
• The mergers and acquisitions have increased in India in
1990’s due to LPG policies.
• When a company acquires or merges it depends upon its
planning and strategies whether they will be profited or
loss.
CONCLUSION

22. Thank You