This presentation tell us the types of m&a and their defence.
The information of this presentation is supported with various article theories definition and presentation
This document provides an overview of mergers and acquisitions. It defines mergers and acquisitions, describes the different types of mergers including horizontal, vertical, conglomerate and concentric mergers. It also outlines the key steps in the M&A process including company analysis, valuation, due diligence, approval and closing. Common valuation methods and financing options are also summarized. The document concludes with examples of major M&A deals in India.
The document summarizes the merger of Idea and Vodafone India. Vodafone India and Idea Cellular were the second and third largest mobile network operators in India, respectively. In 2017, they announced a merger to create the largest telecom operator in India, with over 400 million subscribers. Key terms of the merger included equal representation of both companies on the board and in management, with Aditya Birla Group and Vodafone Group becoming joint promoters of the new combined entity called Vodafone Idea Limited. The merger aimed to leverage the companies' networks, assets, and market positions to achieve leadership across India.
Acc- Holcim Merger & Acquisition Case Study snigdha sarkar
Holcim acquired a majority stake in ACC, India's largest cement producer, through a series of agreements with other shareholders of Ambuja Cements India Limited (ACIL), ACC's majority shareholder. Key aspects of the acquisition included Holcim Mauritius purchasing shares of ACIL from other shareholders and subscribing to additional shares, increasing Holcim's total stake in ACIL to 67%. Holcim also gained control of ACC through its majority stake in ACIL. The acquisition price for public shareholders of ACC was Rs. 370 per share, justified based on stock price analyses showing average prices of Rs. 282.94 for the previous 26 weeks and Rs. 350.61 for the previous 2 weeks.
This document presents information on mergers and acquisitions (M&A) through a slideshow presentation. It discusses the history of M&A in India, defines mergers and acquisitions, compares the differences between them, and outlines the objectives, benefits, types, examples, process, strategies, and problems associated with M&A. It also provides details on the recent merger between Tech Mahindra and Satyam, including analysis and outlook. In conclusion, it states that the success of an M&A depends on the planning and strategies of the acquiring company.
Walmart acquired a 77% stake in Flipkart for $16 billion, valuing the Indian e-commerce company at $20.77 billion. This represents the largest acquisition of an e-commerce company. Sachin Bansal sold his 5.5-6% stake but Binny Bansal will remain as CEO of Flipkart. Walmart wanted to increase its stake to 85% to enter and capture the rapidly growing Indian market and compete with rival Amazon. Flipkart holds the majority of Indian consumers and has a strong supply chain network serving over 800 cities daily.
The document discusses mergers and acquisitions, providing definitions and examples. It describes the typical stages in an M&A deal including preliminary assessment, proposal, exit planning, and integration. Key factors driving M&A activity in India are also summarized such as increasing competition and globalization.
This document discusses mergers and acquisitions. It defines a merger as a transaction where two firms integrate operations on an equal basis to create a stronger competitive advantage. An acquisition is defined as one company buying another, where the acquiring company absorbs the target company. Mergers and acquisitions are pursued to achieve economies of scale, consolidate saturated markets, and improve competitive position. The document also discusses reasons for mergers and acquisitions failing, such as cultural differences and flawed intentions.
1. WhatsApp had over 450 million active users and was growing faster than any other company.
2. Facebook wanted to gain WhatsApp's large and loyal user base.
3. The acquisition helped Facebook expand into mobile messaging and compete with other messaging apps.
4. Mark Zuckerberg believed gaining WhatsApp's users was important for Facebook's future growth and success in mobile.
This document provides an overview of mergers and acquisitions. It defines mergers and acquisitions, describes the different types of mergers including horizontal, vertical, conglomerate and concentric mergers. It also outlines the key steps in the M&A process including company analysis, valuation, due diligence, approval and closing. Common valuation methods and financing options are also summarized. The document concludes with examples of major M&A deals in India.
The document summarizes the merger of Idea and Vodafone India. Vodafone India and Idea Cellular were the second and third largest mobile network operators in India, respectively. In 2017, they announced a merger to create the largest telecom operator in India, with over 400 million subscribers. Key terms of the merger included equal representation of both companies on the board and in management, with Aditya Birla Group and Vodafone Group becoming joint promoters of the new combined entity called Vodafone Idea Limited. The merger aimed to leverage the companies' networks, assets, and market positions to achieve leadership across India.
Acc- Holcim Merger & Acquisition Case Study snigdha sarkar
Holcim acquired a majority stake in ACC, India's largest cement producer, through a series of agreements with other shareholders of Ambuja Cements India Limited (ACIL), ACC's majority shareholder. Key aspects of the acquisition included Holcim Mauritius purchasing shares of ACIL from other shareholders and subscribing to additional shares, increasing Holcim's total stake in ACIL to 67%. Holcim also gained control of ACC through its majority stake in ACIL. The acquisition price for public shareholders of ACC was Rs. 370 per share, justified based on stock price analyses showing average prices of Rs. 282.94 for the previous 26 weeks and Rs. 350.61 for the previous 2 weeks.
This document presents information on mergers and acquisitions (M&A) through a slideshow presentation. It discusses the history of M&A in India, defines mergers and acquisitions, compares the differences between them, and outlines the objectives, benefits, types, examples, process, strategies, and problems associated with M&A. It also provides details on the recent merger between Tech Mahindra and Satyam, including analysis and outlook. In conclusion, it states that the success of an M&A depends on the planning and strategies of the acquiring company.
Walmart acquired a 77% stake in Flipkart for $16 billion, valuing the Indian e-commerce company at $20.77 billion. This represents the largest acquisition of an e-commerce company. Sachin Bansal sold his 5.5-6% stake but Binny Bansal will remain as CEO of Flipkart. Walmart wanted to increase its stake to 85% to enter and capture the rapidly growing Indian market and compete with rival Amazon. Flipkart holds the majority of Indian consumers and has a strong supply chain network serving over 800 cities daily.
The document discusses mergers and acquisitions, providing definitions and examples. It describes the typical stages in an M&A deal including preliminary assessment, proposal, exit planning, and integration. Key factors driving M&A activity in India are also summarized such as increasing competition and globalization.
This document discusses mergers and acquisitions. It defines a merger as a transaction where two firms integrate operations on an equal basis to create a stronger competitive advantage. An acquisition is defined as one company buying another, where the acquiring company absorbs the target company. Mergers and acquisitions are pursued to achieve economies of scale, consolidate saturated markets, and improve competitive position. The document also discusses reasons for mergers and acquisitions failing, such as cultural differences and flawed intentions.
1. WhatsApp had over 450 million active users and was growing faster than any other company.
2. Facebook wanted to gain WhatsApp's large and loyal user base.
3. The acquisition helped Facebook expand into mobile messaging and compete with other messaging apps.
4. Mark Zuckerberg believed gaining WhatsApp's users was important for Facebook's future growth and success in mobile.
Mergers and acquisitions involve the combination of two or more companies. Mergers see the merging companies fully integrate to form an entirely new company, while acquisitions see one company purchase another but maintain separate operations. Mergers and acquisitions allow companies to achieve synergies, diversify, grow, and eliminate competition. Common types of mergers include horizontal, vertical, market extension, product extension, and conglomerate mergers. India has seen several large M&A deals over the years across various industries.
Vodafone India and Idea Cellular agreed to merge in March 2017, creating the largest telecom company in India with over 394 million customers. Vodafone would own 45.1% of the merged entity, while Idea's promoters would hold 26% and the rest would be publicly owned. The merger was aimed at making the combined company the largest in India by subscribers as well as boosting revenue through increased market share and an expanded customer base. However, integrating the networks and strategies of the two companies, which had different areas of strength and approaches, could also lead to clashes or loss of consumer choice and jobs.
This document provides a case study and agenda for SG Cowen's recruitment process of new candidates. SG Cowen focuses on recruiting from top business schools to find loyal, committed candidates with strong cultural fits. They also consider candidates from other top universities and former associates. The selection process involves on-campus interviews and assessments at "Super Saturday" events. While this process allows for collective decision making, it could be improved with online testing and multiple interview phases to reduce bias. The document analyzes four candidate profiles and considers their strengths and weaknesses for the role.
Tata Motors, an Indian automotive manufacturing company, acquired an 80% stake in Trilix Srl, an Italian design and engineering firm, for €1.85 million. Trilix offers design and engineering services for the automotive sector, including styling, architecture, and packaging. The vertical merger allows Tata Motors to increase its styling and design capabilities globally and leverage Trilix's existing understanding of the Tata brand and relationship with the company from prior projects.
Mind Tree is an international IT consulting and services company headquartered in India and New Jersey. It operates through two units and was founded in 1999. Mind Tree has over 15 offices globally and focuses on product engineering and IT services. The company emphasizes a culture-led approach and places significant importance on its values, with culture comprising 40% of employee appraisals. Mind Tree utilizes various knowledge management practices like communities of practice, a knowledge portal called Konnect, and a holistic approach involving people, organizations and their interfaces to effectively manage knowledge.
This document outlines various theories of corporate mergers and acquisitions, including differential managerial efficiency, inefficient management, synergy, pure diversification, strategic realignment, hubris, Q-ratio, information and signaling, agency problems, market power, managerialism, and tax considerations. It provides details on each theory, such as how differential efficiency posits that a merger can increase efficiency by bringing a less efficient firm up to the level of the more efficient acquirer. Synergy theories note mergers can create value through operating synergies like economies of scale and scope or financial synergies that lower the combined firm's cost of capital.
The document discusses various types of mergers and acquisitions including horizontal, vertical, conglomerate, and concentric mergers. It provides examples for each type and explains their key characteristics. Some benefits of mergers include diversification, increased capacity and market share. However, mergers can fail due to issues with cultural integration, communication, and management. Acquisitions differ from mergers in that one company clearly takes ownership of another. Acquisitions aim to achieve economies of scale, staff reductions, new technology, and market reach. Hostile takeovers are strongly resisted while friendly takeovers have management agreement. Firms undertake takeovers to gain market growth, economies of scale, and complementing skills.
1. The document presents cost and production data for two models, Model 101 and Model 102, including direct labor costs, variable overhead costs, selling prices, contribution margins, and fixed overhead costs.
2. An optimization model is formulated to maximize total profit by determining the optimal production quantities of each model, subject to various capacity constraints.
3. Sensitivity analysis shows that 500 additional units of engine assembly capacity can be added before it impacts the optimal production decision, and profit would increase by $2000 for every additional 100 units of capacity.
The document discusses Godrej's ChotuKool case study and opportunity in India. It notes that 80% of Indian households lacked refrigeration due to cost, and capturing 50% of this market could generate $6.8 billion in sales. However, Godrej was facing declining market share and new competitors. The 2009 soft launch revealed issues with specifications, marketing strategy, and target customers being mom-and-pop shops instead of individuals. While urban rollout has advantages over rural integration for a second launch, it may change the product's agenda or impact sales of existing refrigerators.
House of Tata: Acquiring a Global FootprintAbhigyan Singh
The 134-year-old Tata Group with 95 operating companies (31 of them publicly traded) and 230,000 employees, it is India's largest private-sector employer, its biggest taxpayer, and its greatest foreign-exchange earner.
The document provides details about the merger between Arcelor and Mittal Steel in 2006 that created ArcelorMittal, the world's largest steel company. It discusses the key events in the merger process, including Mittal Steel's initial offer, Arcelor's resistance attempts including a proposed merger with Severstal, and Mittal Steel increasing its offer price until Arcelor accepted a final offer of €33.5 billion. It also summarizes some of the expected synergies and gains from the merger as well as preliminary accounting adjustments made during the purchase price allocation process.
Vodafone India and Idea Cellular merged to form Vodafone Idea Limited in 2018. This created the largest telecom operator in India with over 400 million subscribers. The merger aimed to help both companies tackle increased competition from Reliance Jio and reduce debt levels. It combined Vodafone's network assets and spectrum holdings with Idea's mobile customer base. The new entity faces challenges in integrating operations while improving network quality and raising funds, but may benefit customers through competitive plans and new technologies.
This document summarizes the acquisition of Corus by Tata Steel. Tata Steel, an Indian steel company, acquired Corus, a European steel producer, in 2007 for $12.11 billion. The acquisition allowed Tata Steel to gain access to Corus' production facilities and technology in Europe. It also helped Tata Steel rise to become the 5th largest steel producer globally. However, the large acquisition debt of $8 billion also raised issues about whether Tata Steel overpaid for Corus. After the deal, Tata Steel faced challenges in integrating the two companies' differing cultures and management styles.
The document discusses mergers and acquisitions. It defines mergers as a financial tool where two companies combine with mutual consent to expand operations. It describes different types of mergers like horizontal, vertical, and conglomerate mergers. It provides examples of mergers in different industries. It also defines acquisitions as one company purchasing another. It discusses the benefits and potential failures of mergers as well as largest M&A deals worldwide. It analyzes M&A activity in India by sector and cross-border deals involving Indian companies.
Mergers and acquisitions allow companies to combine operations in order to gain competitive advantages. A merger combines two companies as equals, while an acquisition involves one company purchasing another. There are benefits like increased market share and economies of scale, but also risks such as cultural clashes. Some of the largest M&A deals in India include Tata Steel's acquisition of Corus for $12.2 billion, Vodafone's purchase of Hutchison Essar for $11.1 billion, and Ranbaxy's acquisition by Daiichi Sankyo for $4.5 billion. Proper communication, transparency, and managing cultural integration are important to prevent mergers and acquisitions from failing.
The document provides an overview of Adani Group, an Indian conglomerate company. It discusses Adani Group's businesses which include commodities trading, ports, special economic zones, and energy. It also mentions the group's revenues, locations, employees, and listed companies. Furthermore, it summarizes Adani Group's capabilities in trading, infrastructure development, and future projects in renewable energy and thermal power.
General Mills Acquisition Of Pillsbury From Diageodpark1
General Mills proposed acquiring Pillsbury from Diageo in a stock-for-stock exchange worth over $10 billion. If approved, it would be General Mills' largest acquisition. General Mills would issue 141 million shares to Diageo, making Diageo the largest shareholder. General Mills believes acquiring Pillsbury will provide strategic benefits through diversification, growth, synergies, a stronger global presence, and cost savings estimated at $527.55 million in present value.
TYPES OF MERGERS IN DETAIL WITH EXAMPLES!!!Moosa Kazi
This document defines and provides examples of different types of mergers, acquisitions, and defense mechanisms used by companies. It discusses horizontal mergers between companies in similar industries, vertical mergers between companies at different production stages, and conglomerate mergers between unrelated industries. The document also outlines friendly, hostile, and reverse acquisitions as well as poison puts, poison pills, golden parachutes, supermajority provisions, greenmail, and Pac-Man defenses used to prevent hostile takeovers.
This document discusses mergers and acquisitions. It defines mergers as a combination of two or more companies into one surviving company, while acquisitions involve purchasing a controlling interest in another company. The document outlines different types of mergers like horizontal, vertical, and conglomerate mergers. It also discusses leveraged buyouts, hostile takeovers, and bailout takeovers. Some benefits of mergers and acquisitions mentioned include gaining cost efficiency, entering new markets, and improving competitiveness. Potential causes of failures include cultural differences between companies and defensive or ego-driven motivations. Several major mergers and acquisitions involving Indian companies are also briefly outlined.
Mergers and acquisitions involve the combination of two or more companies. Mergers see the merging companies fully integrate to form an entirely new company, while acquisitions see one company purchase another but maintain separate operations. Mergers and acquisitions allow companies to achieve synergies, diversify, grow, and eliminate competition. Common types of mergers include horizontal, vertical, market extension, product extension, and conglomerate mergers. India has seen several large M&A deals over the years across various industries.
Vodafone India and Idea Cellular agreed to merge in March 2017, creating the largest telecom company in India with over 394 million customers. Vodafone would own 45.1% of the merged entity, while Idea's promoters would hold 26% and the rest would be publicly owned. The merger was aimed at making the combined company the largest in India by subscribers as well as boosting revenue through increased market share and an expanded customer base. However, integrating the networks and strategies of the two companies, which had different areas of strength and approaches, could also lead to clashes or loss of consumer choice and jobs.
This document provides a case study and agenda for SG Cowen's recruitment process of new candidates. SG Cowen focuses on recruiting from top business schools to find loyal, committed candidates with strong cultural fits. They also consider candidates from other top universities and former associates. The selection process involves on-campus interviews and assessments at "Super Saturday" events. While this process allows for collective decision making, it could be improved with online testing and multiple interview phases to reduce bias. The document analyzes four candidate profiles and considers their strengths and weaknesses for the role.
Tata Motors, an Indian automotive manufacturing company, acquired an 80% stake in Trilix Srl, an Italian design and engineering firm, for €1.85 million. Trilix offers design and engineering services for the automotive sector, including styling, architecture, and packaging. The vertical merger allows Tata Motors to increase its styling and design capabilities globally and leverage Trilix's existing understanding of the Tata brand and relationship with the company from prior projects.
Mind Tree is an international IT consulting and services company headquartered in India and New Jersey. It operates through two units and was founded in 1999. Mind Tree has over 15 offices globally and focuses on product engineering and IT services. The company emphasizes a culture-led approach and places significant importance on its values, with culture comprising 40% of employee appraisals. Mind Tree utilizes various knowledge management practices like communities of practice, a knowledge portal called Konnect, and a holistic approach involving people, organizations and their interfaces to effectively manage knowledge.
This document outlines various theories of corporate mergers and acquisitions, including differential managerial efficiency, inefficient management, synergy, pure diversification, strategic realignment, hubris, Q-ratio, information and signaling, agency problems, market power, managerialism, and tax considerations. It provides details on each theory, such as how differential efficiency posits that a merger can increase efficiency by bringing a less efficient firm up to the level of the more efficient acquirer. Synergy theories note mergers can create value through operating synergies like economies of scale and scope or financial synergies that lower the combined firm's cost of capital.
The document discusses various types of mergers and acquisitions including horizontal, vertical, conglomerate, and concentric mergers. It provides examples for each type and explains their key characteristics. Some benefits of mergers include diversification, increased capacity and market share. However, mergers can fail due to issues with cultural integration, communication, and management. Acquisitions differ from mergers in that one company clearly takes ownership of another. Acquisitions aim to achieve economies of scale, staff reductions, new technology, and market reach. Hostile takeovers are strongly resisted while friendly takeovers have management agreement. Firms undertake takeovers to gain market growth, economies of scale, and complementing skills.
1. The document presents cost and production data for two models, Model 101 and Model 102, including direct labor costs, variable overhead costs, selling prices, contribution margins, and fixed overhead costs.
2. An optimization model is formulated to maximize total profit by determining the optimal production quantities of each model, subject to various capacity constraints.
3. Sensitivity analysis shows that 500 additional units of engine assembly capacity can be added before it impacts the optimal production decision, and profit would increase by $2000 for every additional 100 units of capacity.
The document discusses Godrej's ChotuKool case study and opportunity in India. It notes that 80% of Indian households lacked refrigeration due to cost, and capturing 50% of this market could generate $6.8 billion in sales. However, Godrej was facing declining market share and new competitors. The 2009 soft launch revealed issues with specifications, marketing strategy, and target customers being mom-and-pop shops instead of individuals. While urban rollout has advantages over rural integration for a second launch, it may change the product's agenda or impact sales of existing refrigerators.
House of Tata: Acquiring a Global FootprintAbhigyan Singh
The 134-year-old Tata Group with 95 operating companies (31 of them publicly traded) and 230,000 employees, it is India's largest private-sector employer, its biggest taxpayer, and its greatest foreign-exchange earner.
The document provides details about the merger between Arcelor and Mittal Steel in 2006 that created ArcelorMittal, the world's largest steel company. It discusses the key events in the merger process, including Mittal Steel's initial offer, Arcelor's resistance attempts including a proposed merger with Severstal, and Mittal Steel increasing its offer price until Arcelor accepted a final offer of €33.5 billion. It also summarizes some of the expected synergies and gains from the merger as well as preliminary accounting adjustments made during the purchase price allocation process.
Vodafone India and Idea Cellular merged to form Vodafone Idea Limited in 2018. This created the largest telecom operator in India with over 400 million subscribers. The merger aimed to help both companies tackle increased competition from Reliance Jio and reduce debt levels. It combined Vodafone's network assets and spectrum holdings with Idea's mobile customer base. The new entity faces challenges in integrating operations while improving network quality and raising funds, but may benefit customers through competitive plans and new technologies.
This document summarizes the acquisition of Corus by Tata Steel. Tata Steel, an Indian steel company, acquired Corus, a European steel producer, in 2007 for $12.11 billion. The acquisition allowed Tata Steel to gain access to Corus' production facilities and technology in Europe. It also helped Tata Steel rise to become the 5th largest steel producer globally. However, the large acquisition debt of $8 billion also raised issues about whether Tata Steel overpaid for Corus. After the deal, Tata Steel faced challenges in integrating the two companies' differing cultures and management styles.
The document discusses mergers and acquisitions. It defines mergers as a financial tool where two companies combine with mutual consent to expand operations. It describes different types of mergers like horizontal, vertical, and conglomerate mergers. It provides examples of mergers in different industries. It also defines acquisitions as one company purchasing another. It discusses the benefits and potential failures of mergers as well as largest M&A deals worldwide. It analyzes M&A activity in India by sector and cross-border deals involving Indian companies.
Mergers and acquisitions allow companies to combine operations in order to gain competitive advantages. A merger combines two companies as equals, while an acquisition involves one company purchasing another. There are benefits like increased market share and economies of scale, but also risks such as cultural clashes. Some of the largest M&A deals in India include Tata Steel's acquisition of Corus for $12.2 billion, Vodafone's purchase of Hutchison Essar for $11.1 billion, and Ranbaxy's acquisition by Daiichi Sankyo for $4.5 billion. Proper communication, transparency, and managing cultural integration are important to prevent mergers and acquisitions from failing.
The document provides an overview of Adani Group, an Indian conglomerate company. It discusses Adani Group's businesses which include commodities trading, ports, special economic zones, and energy. It also mentions the group's revenues, locations, employees, and listed companies. Furthermore, it summarizes Adani Group's capabilities in trading, infrastructure development, and future projects in renewable energy and thermal power.
General Mills Acquisition Of Pillsbury From Diageodpark1
General Mills proposed acquiring Pillsbury from Diageo in a stock-for-stock exchange worth over $10 billion. If approved, it would be General Mills' largest acquisition. General Mills would issue 141 million shares to Diageo, making Diageo the largest shareholder. General Mills believes acquiring Pillsbury will provide strategic benefits through diversification, growth, synergies, a stronger global presence, and cost savings estimated at $527.55 million in present value.
TYPES OF MERGERS IN DETAIL WITH EXAMPLES!!!Moosa Kazi
This document defines and provides examples of different types of mergers, acquisitions, and defense mechanisms used by companies. It discusses horizontal mergers between companies in similar industries, vertical mergers between companies at different production stages, and conglomerate mergers between unrelated industries. The document also outlines friendly, hostile, and reverse acquisitions as well as poison puts, poison pills, golden parachutes, supermajority provisions, greenmail, and Pac-Man defenses used to prevent hostile takeovers.
This document discusses mergers and acquisitions. It defines mergers as a combination of two or more companies into one surviving company, while acquisitions involve purchasing a controlling interest in another company. The document outlines different types of mergers like horizontal, vertical, and conglomerate mergers. It also discusses leveraged buyouts, hostile takeovers, and bailout takeovers. Some benefits of mergers and acquisitions mentioned include gaining cost efficiency, entering new markets, and improving competitiveness. Potential causes of failures include cultural differences between companies and defensive or ego-driven motivations. Several major mergers and acquisitions involving Indian companies are also briefly outlined.
The document discusses mergers and acquisitions. It provides an overview of the topic, including definitions of key terms like mergers, acquisitions, takeovers, and de-mergers. It also discusses some of the main reasons why companies pursue mergers and acquisitions, such as procuring supplies, revamping operations, expanding into new markets, and increasing efficiency. Additionally, it outlines important factors for success like assessing target quality thoroughly and having strong local networks and flexibility.
The document provides an overview of mergers and acquisitions. It defines mergers and acquisitions, outlines the key differences between them, and describes the typical procedures involved. Some of the main advantages and motives for mergers and acquisitions discussed are achieving economies of scale, increasing market share and revenue, enabling cross-selling opportunities between companies, realizing synergies from specialization, and seeking tax benefits. The document also provides examples of major mergers and acquisitions deals.
This document discusses corporate restructuring, providing examples and outlining its purpose and characteristics. Corporate restructuring involves significant changes to a company's ownership, control, assets, or liabilities in order to improve profitability and efficiency. It may involve refocusing a company's business, selling off unprofitable divisions, reorganizing functions, or renegotiating contracts and debt. Examples of leveraged buyouts involving Metromedia, Gibson Greeting Cards, and Thatcher Glass are also provided to illustrate corporate restructuring transactions.
Mergers and acquisitions framework | Veristrat Inc.Veristrat Inc
Mergers and Acquisitions : Amergerisacombinationoftwoormorecompanieswhereonecorporationiscompletelyabsorbedbyanothercorporation. Acquisition essentially means 'to acquire’ or ‘to takeover’.
Legal aspects of mergers and acquisition
Acquisition is the combination of two companies where one corporation is completely absorbed by another corporation. The less important company loses its identity and becomes part of the more important corporation, which retains its identity. It may involve absorption or consolidation.
Merger is also defined as amalgamation. Merger is the fusion of two or more existing companies. All assets, liabilities and the stock of one company stand transferred to Transferee Company in consideration of payment in the form of:
I) Equity shares in the transferee company,
II) Debentures in the transferee company,
III) Cash, or
IV) A mix of the above mode
This document discusses mergers and acquisitions (M&A). It defines mergers and acquisitions, compares the two, and outlines some potential consequences. Mergers occur when two similar-sized companies combine, while acquisitions involve one company purchasing another. Mergers can create value through synergies but also carry risks like culture clashes. M&A activity aims to boost revenue, cut costs, and realize tax benefits, but over 70% of cross-border deals fail due integration challenges.
The document discusses mergers and acquisitions in the steel industry, specifically Tata Steel's acquisition of Corus Group in 2007. Some key points:
- Global steel industry was consolidating through M&A to gain scale and efficiencies. Tata's acquisition of Corus made them the 5th largest steelmaker.
- Tata paid $12 billion for Corus after a bidding war with CSN of Brazil. The acquisition gave Tata a presence in mature European markets and access to Corus' technology and high-end processing facilities.
- Benefits for Corus included addressing high costs through synergies with Tata, one of the lowest cost steel producers. Cultural compatibility between the companies also
This document discusses mergers and acquisitions in the Indian banking sector. It begins by introducing mergers and acquisitions, defining mergers as a combination of two companies into one surviving company that acquires all assets and liabilities, while acquisitions involve one company purchasing a controlling stake in another. It then provides an overview of the Indian banking industry and its structure. The remainder of the document discusses the types, purposes, impacts, advantages and differences between mergers and acquisitions in depth.
A Case study on mergers and acquisitions
we have in the folder - Types of Acquisitions what all is required for an acquisition and the legal aspects for it.
Also, Advantages and disadvantages of Mergers and Acquisition (M&A)
1) Mergers and acquisitions involve the combination of two or more companies. They allow companies to expand their business, gain economies of scale, and eliminate competition.
2) The document discusses the purposes, types, advantages, and impact on stakeholders of mergers and acquisitions. Common purposes include market expansion, procurement of supplies, and improving financial strength. Types include horizontal, vertical, and conglomerate mergers. Advantages are increased value and efficiency for shareholders.
3) Mergers can benefit consumers through lower prices and better quality. They can also impact workers through potential job losses or gains and impact the general public through increased economic power of large companies. Every merger must be examined individually to understand its
Corporate restructuring study material-final (2)Haridas Karath
This document provides an overview of various types of corporate restructuring transactions under Indian law. It begins by discussing mergers and amalgamations, noting the technical differences between the two but their common use. It then covers the different types of mergers (horizontal, vertical, congeneric, and conglomerate), as well as cash mergers and triangular mergers. Next, it discusses acquisitions, including friendly takeovers, hostile takeovers, and leveraged buyouts. It also mentions bailout takeovers. Finally, it briefly outlines strategic alliances, joint ventures, and demergers as other forms of corporate restructuring.
Mergers and acquisitions are increasing in the Indian banking sector. The largest merger to date was HDFC Bank merging with Times Bank, creating the largest private sector bank. Overseas, mergers like Travelers Group with Citibank and Bank of America with Nations Bank have triggered more banking mergers worldwide. Europe and Japan are also restructuring their financial sectors through mergers and acquisitions. Bank mergers in India allow for added money power, expanded reach, improved products, economies of scale, and risk diversification. Proposed mergers like UTI Bank with Centurian Bank would create one of the largest private banks in India. State Bank of India is also planning mergers to consolidate its position. Some Indian financial players are pursuing
The document discusses different types of mergers and acquisitions (M&A). It describes mergers as combinations of two or more companies into one entity where only one company survives. Acquisitions occur when one company gains control of another by purchasing assets or shares. The document then outlines various types of M&As based on industry overlap, strategic rationale, and transaction structure. It concludes by briefly summarizing some high-profile M&A deals in India.
1) Debt is money borrowed that must be repaid, usually with interest. Short term debt is due within 1 year and includes overdrafts, accounts receivable financing, and customer advances. Long term debt matures in over 1 year and includes bank loans, retained profits, bonds, and mortgages.
2) Sources of short term debt include trade credit, accounts receivable financing, commercial banks, and credit factoring. Sources of long term debt include bank loans, retained profits, equity/debentures, asset sales, and private equity.
3) Merits of debt are control, tax deductibility, predictability, and scope for expansion. Demerits are qualification requirements, fixed payments
Mergers and acquisitions refer to the corporate strategy of buying, selling, and combining companies. There are several types of M&A transactions. A merger occurs when two companies combine to form a single new company, while an acquisition happens when one company purchases another. Mergers and acquisitions can be financed through cash payments, borrowing, issuing bonds, or offering stock in the acquiring company. Accurate business valuations are important for determining the purchase price in an M&A deal.
Mergers and acquisitions (M&A) refer to the aspect of corporate strategy dealing with buying, selling, and combining companies. There are several types of M&A transactions, including mergers, acquisitions, and asset purchases. Motives for M&A include achieving economies of scale, increasing market share, cross-selling opportunities, and tax advantages. However, M&A also carry risks such as overpayment, cultural clashes, and failure to achieve expected synergies.
This article explains some basic defense strategies that can be used by the management of potential target companies to deter unwanted acquisition advances.
Similar to merger and aquisition and types of defence (20)
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Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
Abhay Bhutada, the Managing Director of Poonawalla Fincorp Limited, is an accomplished leader with over 15 years of experience in commercial and retail lending. A Qualified Chartered Accountant, he has been pivotal in leveraging technology to enhance financial services. Starting his career at Bank of India, he later founded TAB Capital Limited and co-founded Poonawalla Finance Private Limited, emphasizing digital lending. Under his leadership, Poonawalla Fincorp achieved a 'AAA' credit rating, integrating acquisitions and emphasizing corporate governance. Actively involved in industry forums and CSR initiatives, Abhay has been recognized with awards like "Young Entrepreneur of India 2017" and "40 under 40 Most Influential Leader for 2020-21." Personally, he values mindfulness, enjoys gardening, yoga, and sees every day as an opportunity for growth and improvement.
Understanding how timely GST payments influence a lender's decision to approve loans, this topic explores the correlation between GST compliance and creditworthiness. It highlights how consistent GST payments can enhance a business's financial credibility, potentially leading to higher chances of loan approval.
Independent Study - College of Wooster Research (2023-2024) FDI, Culture, Glo...AntoniaOwensDetwiler
"Does Foreign Direct Investment Negatively Affect Preservation of Culture in the Global South? Case Studies in Thailand and Cambodia."
Do elements of globalization, such as Foreign Direct Investment (FDI), negatively affect the ability of countries in the Global South to preserve their culture? This research aims to answer this question by employing a cross-sectional comparative case study analysis utilizing methods of difference. Thailand and Cambodia are compared as they are in the same region and have a similar culture. The metric of difference between Thailand and Cambodia is their ability to preserve their culture. This ability is operationalized by their respective attitudes towards FDI; Thailand imposes stringent regulations and limitations on FDI while Cambodia does not hesitate to accept most FDI and imposes fewer limitations. The evidence from this study suggests that FDI from globally influential countries with high gross domestic products (GDPs) (e.g. China, U.S.) challenges the ability of countries with lower GDPs (e.g. Cambodia) to protect their culture. Furthermore, the ability, or lack thereof, of the receiving countries to protect their culture is amplified by the existence and implementation of restrictive FDI policies imposed by their governments.
My study abroad in Bali, Indonesia, inspired this research topic as I noticed how globalization is changing the culture of its people. I learned their language and way of life which helped me understand the beauty and importance of cultural preservation. I believe we could all benefit from learning new perspectives as they could help us ideate solutions to contemporary issues and empathize with others.
[4:55 p.m.] Bryan Oates
OJPs are becoming a critical resource for policy-makers and researchers who study the labour market. LMIC continues to work with Vicinity Jobs’ data on OJPs, which can be explored in our Canadian Job Trends Dashboard. Valuable insights have been gained through our analysis of OJP data, including LMIC research lead
Suzanne Spiteri’s recent report on improving the quality and accessibility of job postings to reduce employment barriers for neurodivergent people.
Decoding job postings: Improving accessibility for neurodivergent job seekers
Improving the quality and accessibility of job postings is one way to reduce employment barriers for neurodivergent people.
Optimizing Net Interest Margin (NIM) in the Financial Sector (With Examples).pdfshruti1menon2
NIM is calculated as the difference between interest income earned and interest expenses paid, divided by interest-earning assets.
Importance: NIM serves as a critical measure of a financial institution's profitability and operational efficiency. It reflects how effectively the institution is utilizing its interest-earning assets to generate income while managing interest costs.
"Does Foreign Direct Investment Negatively Affect Preservation of Culture in the Global South? Case Studies in Thailand and Cambodia."
Do elements of globalization, such as Foreign Direct Investment (FDI), negatively affect the ability of countries in the Global South to preserve their culture? This research aims to answer this question by employing a cross-sectional comparative case study analysis utilizing methods of difference. Thailand and Cambodia are compared as they are in the same region and have a similar culture. The metric of difference between Thailand and Cambodia is their ability to preserve their culture. This ability is operationalized by their respective attitudes towards FDI; Thailand imposes stringent regulations and limitations on FDI while Cambodia does not hesitate to accept most FDI and imposes fewer limitations. The evidence from this study suggests that FDI from globally influential countries with high gross domestic products (GDPs) (e.g. China, U.S.) challenges the ability of countries with lower GDPs (e.g. Cambodia) to protect their culture. Furthermore, the ability, or lack thereof, of the receiving countries to protect their culture is amplified by the existence and implementation of restrictive FDI policies imposed by their governments.
My study abroad in Bali, Indonesia, inspired this research topic as I noticed how globalization is changing the culture of its people. I learned their language and way of life which helped me understand the beauty and importance of cultural preservation. I believe we could all benefit from learning new perspectives as they could help us ideate solutions to contemporary issues and empathize with others.
Vicinity Jobs’ data includes more than three million 2023 OJPs and thousands of skills. Most skills appear in less than 0.02% of job postings, so most postings rely on a small subset of commonly used terms, like teamwork.
Laura Adkins-Hackett, Economist, LMIC, and Sukriti Trehan, Data Scientist, LMIC, presented their research exploring trends in the skills listed in OJPs to develop a deeper understanding of in-demand skills. This research project uses pointwise mutual information and other methods to extract more information about common skills from the relationships between skills, occupations and regions.
5. 2.Conglomerate mergers
A merger between firm involved in totally unrelated business activity
The Walt Disney Co. will acquire Capital Cities/ABC Inc. in a surprise merger of entertainment
giants valued at about $19 billion,
Merge with
6. 3.Concentric Mergers
Merger which are into similar type of business
On April 6, 1998, the merger between Citicorp and Travelers Group was announced to the world,
creating a $140 billion firm with assets of almost $700 billion. The deal would enable Travelers to
market mutual funds and insurance to Citicorp's retail customers while giving the banking
divisions access to an expanded client base of investors and insurance buyers.
Merge
with
7. Vertical mergers
When two companies produce same goods and services for one specific
product
he announced that PayPal sold him x.com, a domain he previously owned. Back in 1999, Musk
launched an online banking service at X.com; the company eventually merged with its rival
Confinity and was renamed to PayPal in 2001
10. 1.Friendly Acquisition
Both the companies approve the acquisition under friendly condition
Johnson & Johnson (J&J) has acquired Netherlands-based biopharmaceutical company Crucell
for close to $2.4 billion dollars, moving J&J prominently into the arena of vaccine development,
according to a company press release. This move comes after several years of partnership between
the two companies
12. Back Flip Acquisition
A backflip takeover is a rare type of takeover in which the acquirer becomes a subsidiary of the
acquired or targeted company after deal completion. The combined entity retains the name of the
acquired company. A backflip takeover gets its name from the fact that it runs counter to the
norm of a conventional acquisition, where the acquirer is the surviving entity and the acquired
company becomes a subsidiary of the acquirer.
While the acquired company's assets are subsumed into the acquiring company, control of the
combined entity is generally in the hands of the acquirer.
For example, DullCo is a large company that has fallen on relatively hard times because the
massive recall of one of its biggest-selling products has hurt its finances and caused large-scale
customer defections. Management decides that its brand has suffered irreparable damage, and
decides to use its financial resources, which are still substantial, to acquire smaller and fast-
growing rival Hotshot Inc. DullCo’s management also decides that business after the completed
takeover will be conducted under the Hotshot name, which will be the surviving entity, with
DullCo becoming a Hotshot subsidiary.
13. Hostile Acquisition
The smaller company having visionary idea is forcefully acquired
Larsen and Toubro Ltd (L&T) gained a controlling interest in Mindtree Ltd, raising its
stake to 60% in the Bengaluru-based company on Wednesday and successfully concluding
India’s first hostile takeover of a software developer.
L&T completed buying the 31% additional stake it targeted to acquire in Mindtree for
₹4,988.82 crore through an open offer as large investors rushed to sell their holdings. The
offer to purchase 50.9 million shares of Mindtree from public shareholders was subscribed
1.2 times.
14. • Mindtree board to consider a share buyback amid L&T’s plans
to buy the 20.4% stake held by CCD founder V.G. Siddhartha
• The promoters have a two-pronged plan with a singular
objective: purchase Mindtree shares from Siddhartha to prevent a
hostile takeover by an outsider
https://www.livemint.com/companies/news/mindtree-plans-defence-against-hostile-takeover-by-l-t-1552675956484.html
15. Poison pill
In July 2018, leading American restaurant franchise Papa John’s International Inc.’s (PZZA)
board voted to adopt the poison pill to prevent ousted founder John Schnatter from gaining
control of the company. Schnatter, who then owned 30% of the company’s stock, was the largest
shareholder of the company.
To repeal any possible takeover attempts by Schnatter, the company's board of directors adopted
a Limited Duration Stockholders Rights plan (a poison pill provision). It granted existing
investors, except for Schnatter and his holding company, a dividend distribution of one right per
common share. The New York Times reported that the plan would take effect if Schnatter and his
affiliates raised their combined stake in the company to 31%, or if anyone were to buy 15% of the
common stock without the board’s approval.
Since Schnatter was excluded from the dividend distribution, the tactic effectively made a hostile
takeover of the company unattractive as the potential acquirer would have to pay twice the value
per share of the company's common stock. It prevented him from trying to take over the company
he founded by buying its shares at market price.
16. Poison put
A company's board of directors believes that a larger competitor may attempt to acquire it in the future. As a
defense, the company incurs new debt by issuing corporate bonds. As part of the newly issued bond, the board
includes a poison put covenant, which is a provision that stipulates bondholders can receive early repayment of
the debt should a triggering event occur, such as a hostile takeover. The total value of the bonds is $50 million.
For the competitor to successfully acquire the company, it must not only be able to afford the purchase of a
controlling interest of shares but also afford a potential immediate repayment of $50 million to bondholders. If
the acquirer does not have the money to pay this additional acquisition cost, they may need to withdraw their
hostile takeover attempt, which means the poison put strategy was effective for the target company.
17. Golden Parachute
Yahoo laid out its golden parachute plans for all of its full-time employees Tuesday,
in a filing with the Securities and Exchange Commission. The filing outlines two
change-in-control severance plans, should the Internet search pioneer find itself
under new ownership, aka Microsoft.
18. Supermajorities and Voting Shareholders
A supermajority of voters is usually counted as a company’s shareholder meeting. This can be
an annual meeting or a non-regular meeting throughout the year, depending on the nature
and urgency of the matter being voted upon. Shareholder meetings are generally
administrative sessions that follow a specific format that is decided in advance. The format is
usually a parliamentary procedure, with specific time allocated for each speaker and protocol
for shareholders who wish to make statements.
A corporate secretary, attorney, or another official often presides over the process. At the
conclusion of the meeting, the minutes are formally recorded.
In May 2018, Duke Energy (NYSE: DUK) issued a statement noting that a binding
company-sponsored proposal was not approved after it did not achieve the required 80
percent of total outstanding shares. The proposed amendment was to eliminate supermajority
voting requirements in Duke’s Restated Certificate of Incorporation of Duke Energy
Corporation.
19. Greemail
Sir James Goldsmith was a notorious corporate raider of the 1980s. He orchestrated two high-profile
greenmail campaigns against St. Regis Paper Company and Goodyear Tire and Rubber Company.
Goldsmith earned $51 million from his St. Regis venture and $93 million from his Goodyear raid, which
took only two months.
In October 1986, Goldsmith purchased an 11.5% stake in Goodyear at an average cost of $42 a share. He
also filed plans to finance a takeover of the company with the Securities & Exchange Commission (SEC).
Part of his plan was to have the company sell off all of its assets except its tire business, which was not
received well by Goodyear executives.
In response to Goodyear's resistance, Goldsmith proposed to sell his stake back to the company for $49.50
share; this strong-arm proposal is often referred to as the ransom or the goodbye kiss. Eventually, Goodyea
accepted and subsequently repurchased 40 million shares from shareholders at $50 per share, which cost t
company $2.9 billion. Immediately following the repurchase, Goodyear’s share price fell to $42.
20. Pac man defence
In 1982, Bendix Corp. attempted to acquire Martin Marietta by purchasing a controlling amount of its
stocks. Bendix became the owner of the company on paper. However, Martin Marietta’s management
retaliated by selling off its chemical, cement and aluminum divisions, and borrowing over $1 billion to
counter the acquisition. The conflict resulted in Allied Corp. acquiring Bendix.
In February 1988, after a month-long takeover fight that began when E-II Holdings Inc. made an offer for
American Brands Inc., American Brands bought E-II for $2.7 billion. American Brands financed the merger
through existing lines of credit and a private placement of commercial paper.
Finally, in October 2013, Jos. A. Bank launched a bid to take over competitor Men’s Wearhouse. Men’s
Wearhouse rejected the bid and countered with its own offers. During negotiations, Jos. A. Bank bought
Eddie Bauer to gain more control in the marketplace. Men’s Wearhouse ended up buying Jos. A. Bank for
$1.8 billion.