Mergers And Acquisitions

By- Abhinav Tyagi Praroop Pandey

What is Mergers And Acquisitions

Mergers and acquisitions (M&A) is a general term used to refer to the consolidation of companies. A merger is a combination of two companies to form a new company, while an acquisition is the purchase of one company by another in which no new company is formed.

Mergers And Acquisitions case - i

Airtel’s acquisition of Zain in Africa

About airtel- zain deal• Airtel a deal with Kuwait-based Zain Telecom to

buy its African business for $10.7 billion (about Rs. 48,000 crore)

• Announcing the deal, Sunil Mittal, chairman and managing director of Bharti Enterprises said, "This agreement is a landmark for global telecom industry and game changer for Bharti.

• The Zain deal would also catapult the Indian entity into the league of world's top 10 telecom players.

• Of the $10.7 billion enterprise value of Zain, Bharti will be paying $8.3 billion upfront and $700 million after a year. It would also take over approximately $1.7 billion of Zain's debts as on December 31, 2009. 

• Of the $8.3 billion paid to Zain, Bharti has raised the debt from a consortium of foreign banks and State Bank of India with the lead-arranger and lead-advisor Standard Chartered Bank committing the highest amount -- $1.3 billion followed by $0.9 billion by Barclays.

Mergers And Acquisitions Case - ii

Mahindra acquires SsangYong

About Mahindra-SsangYong deal

• The debt-ridden SsangYong, which was under court administration, was put on sale last year. Mahindra had emerged the preferred bidder in August 2010 and paid R2,200 crore for a majority stake in February 2011.

• M&M also considers utilising the group's strong IT capabilities for Ssangyong and Mahindra Finance starting operations in Korea to enhance the sales of Ssangyong vehicles

Mergers And Acquisitions case - iii

Google buys browser-based malware scanner VirusTotal

about Google –VirusTotal deal

VirusTotal says it will operate independently from Google and will keep its partnerships with other antivirus companies and security experts. The company says Google can help improve the service and “ensure that our tools are always ready, right when you need them.”

Mergers And Acquisitions case - iv

Tata Motors acquire Jaguar Land Rover

About TATA- Jaguar Deal• Tata Motors acquired the Jaguar Land

Rover business from the Ford Motor Company for a net consideration of $2.3 billion, as announced on March 26, 2008 in an all-cash transaction. Ford has contributed about $600 million to the Jaguar Land Rover pension plans.

• Ford will continue to supply Jaguar and Land Rover for differing periods with engines, stampings and other car components, in addition to a variety of technologies.

Mergers And Acquisitions case - v

Facebooks acquisition of WhatsApp for $22 Billion

About Facebook – WhatsApp deal• Facebook officially sealed its massive

purchase of WhatsApp, a report filed with the U.S. Securities and Exchange Commission stated, with a final price of about $22 billion.

• For this, Facebook offered $4 billion in cash and $12 billion in stock, with the company’s founders eligible for an additional $3 billion in restricted stock. But as Facebook’s own stock has continued to rise, so has the value of the deal.

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