SUBMITTED TO: -

PROF. NAGESHWARA SINGH

Submitted by Manish mishra Regd no- 5107 Pgdm – 3rd sem

Title Merger or acquisition

DEFINITION OF MERGER Merger is defined as combination of two or more

companies into a single company where one survives and the others lose their corporate existence.

The survivor acquires all the assets as well as liabilities of the merged company.

Generally, the surviving company is the buyer, which retains its identity, and the extinguished company is the seller

Merger is also defined as amalgamation.

is the fusion of two or more existing companies.

TYPES OF MERGERS:- Vertical combination:-A company would like to

take over another company or seek its merger with that company to expand espousing backward integration to assimilate the resources of supply and forward integration towards market outlets.

Horizontal combination:-It is a merger of two competing firms which are at the same stage of industrial process. The acquiring firm belongs to the same industry as the target company.

Circular combination:-Companies producing distinct products seek amalgamation to share common distribution and research facilities to obtain economies by elimination of cost on duplication and promoting market enlargement.

Conglomerate combination:- It is amalgamation of two companies engaged in unrelated industries like DCM and Modi Industries.

 

ACQUISITION

Acquisition in general sense is acquiring the ownership in the property.

In the context of business combinations, an acquisition is the purchase by one company of a controlling interest in the share capital of another existing company.

 

 

METHODS OF ACQUISITION

An acquisition may be affected by. Agreement with the persons holding majority

interest in the company management like members of the board or major shareholders commanding majority of voting power.

Purchase of shares in open market. To make takeover offer to the general body of

shareholders. Purchase of new shares by private treaty.

TIMES BANK AND HDFC BANK

•Times Bank Limited ,private sector bank promoted by Bennett, Coleman & Co. / Times Group.

•It was merged with HDFC Bank Ltd, effective February 26, 2000.

•This was the first merger of two private banks in the New Generation Private Sector Banks.

Times Bank was a new generation private sector bank established by the Times group.

The merger deal was struck with a stock swap.

The Bennett Coleman group, which promoted the Times Bank, got about 7.5 percent stake in HDFC Bank. 

TATA AND DOCOMO

TATA Do Como, usually referred to as Do Como.

It is a Tata Teleservices Limited (TTSL) owned cellular service.

It’s Tata Group's strategic joint venture with Japanese telecom giant NTT Docomo in November 2008.

Tata Teleservices received a pan-India license to operate GSM telecom services, under the brand "TATA DoCoMo".

Tata Teleservices is the country's fourth largest operator in terms of wireless subscribers.

It offers both prepaid and postpaid GSM cellular phone network in 18 circles.

It has become very popular with its one second pulse especially in semi-urban and rural areas.

TATA STEEL AND CORUS

The Tata Steel formerly known as TISCO.

It is the world's 56th largest steel company.

It’s India's 2nd largest steel company.

It’s an annual crude steel capacity of 3.8 million tones.

It is based in Jamshedpur, Jharkhand, India.

HPCL AND KENYA PETROLEUM REFINARY LIMITED

Hindustan Petroleum Corporation Ltd (HPCL) is control stake of 67 per cent in Kenya Petroleum Refinery Ltd (KPRL) .

The deal valued at around Rs 2,200 corer ($500 million).

HPCL will also acquire 50 per cent of the marketing rights of BP in the African company.

Corus was formed from the merger of Koninklijke Hoogovens N.V. with British Steel Plc on 6 October 1999.

Tata surprised the derivative markets by deciding to raise $6.17bn of debt.

It comes for a new subsidiary of Corus called 'Tata Steel UK', rather than by raising the debt itself.

The final valuation of Corus was $12.04 Billion.