Tutorial on M&A for graduate students and business students

1. MERGERS & ACQUISITIONS

2. MERGER A merger is a combination of two or more firms in which only one firm would survive and the other would cease to exist, its assets / liabilities being taken over by the surviving firm

3. Example For Merger In the 1999 merger of GlaxoWellcome and SmithKline Beecham, both firms ceased to exist when they merged, and a new company, GlaxoSmithKline, was created.

4. AMALGAMATION An amalgamation is an arrangement in which the assets /liabilities being taken over by the surviving firm. An amalgamation is an arrangement in which the assets / liabilities of two or more firms become vested in another firm

5. Example: Amalgamation Aditya Birla Nuvo Amalgamation between Aditya Birla Nuvo Ltd. Madura Garments MG Lifestyle Clothing Peter England Fashions

6. ACQUISITION “Acquisition is the process through which one company takes over the controlling interest of another company”- sometimes hostile

7. Example for Acquisition An example of this would be the takeover of Chrysler by Daimler-Benz in 1999 which was widely referred to in the time, and is still now, as a merger of the two corporations.

8. Other Examples For M&A

9. Tata Steel-Corus: $12.2 billion

10. Vodafone-Hutchison Essar: $11.1 billion

11. Ranbaxy-Daiichi Sankyo: $4.5 billion

14. Tata Motors-Jaguar Land Rover: $2.3 billion

15. REASONS FOR MERGER & ACQUISITIONS

16. Improves Economy Of Scale ExampleArcelor Mittal

17. Market Leadership Example: HP Compaq

18. 3. Financial Benefits

19. Market Access/Entry

20. Diversifying the Portfolio

21. Forward Integration

22. Backward Integration

23. Technology Google’s M&A of

24. What’s in it for you? 267

26. www.edventures1.com