A merger is a combination of two firms where one ceases to exist and the other takes over its assets and liabilities, forming an entirely new company. An amalgamation is similar but the original firms remain, with their assets and liabilities transferred to a new combined firm. An acquisition occurs when one company takes controlling interest of another, sometimes through a hostile takeover. Major recent mergers and acquisitions in India include Tata Steel-Corus, Vodafone-Hutchison Essar, and Tata Motors-Jaguar Land Rover. Companies pursue mergers and acquisitions to improve economies of scale, gain market leadership, and access new markets and technologies.

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

4. AMALGAMATIONAn 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: AmalgamationAditya Birla Nuvo Amalgamation between Aditya Birla Nuvo Ltd.Madura GarmentsMG Lifestyle ClothingPeter 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 AcquisitionAn 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 ScaleExampleArcelor Mittal

17. Market LeadershipExample:HP Compaq

18. 3. Financial Benefits

19. Market Access/Entry

20. Diversifying the Portfolio

21. Forward Integration

22. Backward Integration

23. TechnologyGoogle’s M&A of

24. What’s in it for you?267

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