...DEFINITION OF MERGER * The definition of merger in general and in finance can be stated as follows: In General, "Merger is an absorption of one or more companies by a single existing company." In Finance, "Merger is an act or process of purchasing equity shares (ownership shares) of one or more companies by a single existing company." * The combination of one or more corporations, LLCs, or other business entities into a single business entity; the joining of two or more companies to achieve greater efficiencies of scale and productivity. * The combining of two or more companies, generally by offering the stockholders of one company securities in the acquiring company in exchange for the surrender of their stock. MEANING OF MERGER Before we understand, What is Merger? First, let's find out the simple meaning of an acquiring company and acquired companies. Acquiring company is a single existing company that purchases the majority of equity shares of one or more companies. Acquired companies are those companies that surrender the majority of their equity shares to an acquiring company. Merger is a technique of business growth. It is not treated as a business combination. Merger is done on a permanent basis. Generally, it is done between two companies. However, it can also be done among more than two companies. During merger, an acquiring company and acquired companies come together to decide and execute a merger agreement between them. After merger, acquiring...
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...MERGER & ACQUISITION IN INDIA: An Analytical Study by Harpreet Singh Bedi Sr. Lecturer, Department of Management Lovely School of Business Lovely Professional University Mobile no- 9855267392 Harpreet.bedi_lim@yahoo.com Electronic copy available at: http://ssrn.com/abstract=1618272 MERGER & ACQUISITION IN INDIA: An Analytical Study Abstract The process of mergers and acquisitions has gained substantial importance in today's corporate world. This process is extensively used for restructuring the business organizations. In India, the concept of mergers and acquisitions was initiated by the government bodies. Some well known financial organizations also took the necessary initiatives to restructure the corporate sector of India by adopting the mergers and acquisitions policies. The Indian economic reform since 1991 has opened up a whole lot of challenges both in the domestic and international spheres. The increased competition in the global market has prompted the Indian companies to go for mergers and acquisitions as an important strategic choice. The trends of mergers and acquisitions in India have changed over the years. The immediate effects of the mergers and acquisitions have also been diverse across the various sectors of the Indian economy. Till recent past, the incidence of Indian entrepreneurs acquiring foreign enterprises was not so common. The situation has undergone a sea change in the last couple of years. Acquisition of foreign companies by the Indian businesses...
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...private partnership (PPP) route. The state government completed one port project worth over Rs 700 crore under PPP and it has been put to service delivery, a study conducted by the Associated Chambers of Commerce and Industry of India (Assocham) shows. The industry body released the report titled 'Port Developments in India'. DS Rawat, Secretary General of Assocham said 62 projects in the port sector worth over Rs 82,000 crore are in different stages of implementation under the PPP model. To put it in perspective, in all 881 PPP projects worth over Rs 5.4 lakh crore are taken up across India in different sectors. While there are 31 completed port projects worth over Rs 24,700 crore, about 21 PPP projects in the port sector with a share of 52 percent worth over Rs 43,000 crore are under construction, eight projects worth about Rs 14,000 crore with a share of about 17 percent are under bidding. International Container Transhipment Terminal Vallarpadam Terminal The Kochi International Container Transhipment Terminal (ICTT), locally known as the Vallarpadam Terminal. is a container trans-shipment facility which is part of the Kochi Port. It is the only trans-shipment port in India, and is situated in Kochi, in the state of Kerala.The terminal is biggest in its kind in South Asia Being constructed in three stages, the first phase of the terminal was commissioned on Feb 11, 2011. This can handle cargo up to one million TEUs (twenty-foot equivalent units) per annum. On completion of...
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...firms grew at an annual rate of 26 percent. Although their motives differ from traditional M&A activity, it is clear that, in the near term, emerging competitors present a potential threat to companies in developed countries. Mergers and acquisitions have become a staple of newspaper headlines. Although most M&A activity is initiated by companies in the developed world, a recent A.T. Kearney study of global M&A reveals that a paradigm shift is occurring: Beginning in 2002, deals between developing and developed countries grew at an annual rate of 19 percent— far in excess of the industry average and four times faster than deals conducted within either developing or developed countries alone (see figure 1 on page 2). While not large in absolute terms, this rate of growth indicates how rapidly the developing world is catching up in the M&A business. In fact, the study found that companies from developing countries such as China, India, Malaysia, Russia, the United Arab Emirates and South Africa are snapping up established firms at an astonishing rate. Of the 2,168 majority acquisitions between developed and developing A.T. Kearney | countries in 2007, almost 20 percent — a total of 421 — were driven by companies from developing countries. Furthermore, this pattern is growing by 26 percent annually. This paper highlights the key findings of the global M&A study, and lays out a strategy...
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...ISSN 2249-877X Pu b l i s h ed b y : S o u th As i a n Aca d e m i c Re s ea r ch J o u rn a l s SAJMMR: South Asian Journal of Marketing & Management Research E-COMMERCE TRENDS IN THE CURRENT SCENARIO MARIMUTHU K.N* *Research Scholar, School of Management Studies, University of Hyderabad, Hyderabad - 500046. ABSTRACT Developing country of India is one of the world’s leading emerging markets, growing at a rate of 6-7% even through an era of global economic downturn. The introduction of e-commerce has increased transparency and liquidity in the marketplace. Online sales are expected to overtake traditional sales in less than 10 years. The US was the 2010 leader in global e-commerce sales at 27% of worldwide volume; US e-commerce retail sales totaled about $177bn in 2010, up an average of 13% from 2009. New avenues for e-commerce e.g. daily deals, private sales, etc. boosted the sectors momentum in 2010 and will contribute an increasingly larger share of the e-commerce market in the next few years. The impact of information technology having is brought out more number of online transactions through internet. The internet users in India have time and again adopted the advancements in the online space and are always seeking out to include digital interactions into their daily activities-making purchases and indulging in transactions being one of them. The e-commerce industry is one of the biggest markets in India and GDP will increase 5 times by 2030 further India’s population...
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...MERGER & ACQUSITION IN TELECOM SECTOR OF INDIA Ashish Agnihotri Bhaven Chheda Dipesh Jain Harsh Chauhan Tejashree Bole Zececa Mehta Sector Overview Indian Telecom Industry Total telecom subscribers 325.79 million (June 2009) Tele density 28.33 per cent (June 2008) Quarterly addition of mobile subscribers (April June 2008) 25.80 million Telecom subscribers annual growth rate (2007 08) 44.79% One of the biggest telecom markets in the world Average Revenue Per User (ARPU) for GSM (June2008) US$ 5.6 Indian Telecom Industry More GSM subscribers than fixed line subscribers Telecom equipment market (2007 08) US$ 23,699 million Handset market (2007 08) US$ 5,962 million Expected mobile subscriber base (2010) About 500 million (i.e., more than one phone for every household) It witnessed a CAGR of approximately 29% from 2002 03 to 2007 08. The CAGR is expected to stabilise at 16% between 2007 08 and 2009 10. India An Ideal Investment Destination The large untapped potential in India s rural markets revealed by 9.21 per cent tele density in rural markets as compared to the national level of 28%. The government promoting telecom manufacturing by providing tax sops and establishing telecom-specific Special Economic Zones. Major Players Vodafone-Hutch Deal In Feburary 2007, Vodafone has bagged the 67% Hutch Telecom International (HTIL) stake in Hutch-Essar at an enterprise value of $19.3 billion Income Tax (I-T) department notice...
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...ISSN 2277-3177 Volume 4, Number 1 (2014), pp. 71-84 © Research India Publications http://www.ripublication.com Flipkart-Myntra; From a Merger to an Acquisition Farhat Fatima Periyar Management and Computer College, Jasola, New Delhi Abstract The Indian e-commerce market was worth 75,000 crore, in 2013, according to a joint report by KPMG and Internet and Mobile Association of India. India has the potential to double its economic contribution via Internet, from 1.6 percent GDP at present to 2.8 and 3.3 percent by 2015 [MCkensy’2012]. Indian E-commerce is most likely to generate employment for 1.45 million people in coming two years. Emergence of the new government and its innovative policies are developing hope to bring FDI in e-commerce for local market players. Marking the biggest consolidation in the e-commerce space in India, this report puts light on India’s own Amazon; Flipkart and fashion e-tailer Myntra which jointly exposes their vision to capture more than 50% e-market share by strategic alliance. As Flipkart’s annualized sales crossed over 6,100 crore a year ahead of target. It had estimated to reach the billion dollar mark for gross merchandise value by 2015; on the other hand Myntra’s revenue was about 1,000 crore in the previous financial year. It aims to double its revenue in this financial year as it expands its seller base and adds products following China’s biggest e-retail model Alibaba.com. Myntra has about 100 sellers on board...
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...Up for the Next Big Push Published: February 24, 2011 in India Knowledge@Wharton Earlier this month, newspaper headlines in India about US$5 billion worth of IT outsourcing orders expected from large U.S. banks brought cheer to the Indian IT services industry. In recent months, industry players have been expecting the return of good times, and this news reinforced their optimism. But experts say the US$60 billion industry needs to retool and reposition itself or it risks losing out on growth. According to Sudin Apte, principal analyst and CEO at research firm Offshore Insights: "Businesses in the U.S. and Europe have undergone dramatic changes. The paradigm at their end has changed and so have the needs and requirements from their technology vendors. If Indian IT firms want to stay in the game, they need to change, too." Meanwhile, the country's top IT firms are close to shuffling positions. While Tata Consultancy Services (TCS) and Infosys Technologies continue to hold sway, Cognizant Technologies, currently the fourth-largest player, is threateningly close to unseating Wipro Technologies for the third slot. In the last quarter, Cognizant's revenues grew 45% to reach US$1.31 billion; Wipro was marginally ahead with US$1.34 billion in revenues from IT services. Also getting ready to join the club is iGate, which last month entered the billion-dollar revenue club after buying Patni Computers in a US$1.2 billion deal -- one of the largest acquisitions within the Indian outsourcing...
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...Economics for Everyone: Going Global–FDI Fables–FDI in Multibrand Retail......................................................... 2 Special report - Business in India: Inbound and outbound deals: Their oyste ....................................................... 12 Growing confidence dented by politicians .............................................................................................................. 16 BEST CROSS - BORDER M&A DEAL .................................................................................................................. 18 The Literature on Chinese Outward FDI ................................................................................................................ 19 Page 1 of 36 © 2012 Factiva, Inc. All rights reserved. Economics for Everyone: Going Global–FDI Fables–FDI in Multibrand Retail Economics for Everyone: Going Global–FDI Fables–FDI in Multibrand Retail India Infoline News Service 5,801 words 2 May 2012 Indiainfoline News Service INFOIN English Copyright © 2012. Indiainfoline Ltd. FDI- Foreign Direct Investment Context: NEWS FDI in multi-brand retail to go ahead,TNN (TIMES OF INDIA) Govt says committed to multi-brand retail FDI FE BUREAU Aviation FDI: Cautious, Centre set to take allies on board, BUSINESS STANDARD India has been ranked at the third place in global foreign direct investments in 2009 and will continue to remain among the top five attractive destinations for international investors during 2010-11...
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...E-commerce to M-commerce: The Paradigm Shift COLLEGE NAME: Narsee Monjee Institute of Management Studies (NMIMS) AUTHORS: Sunny Vaswani Aman Bhatia SAP ID: 80101150602 SAP ID: 80101150081 MBA 2015-17 MBA 2015-17 1st Year 1st Year Go Mobile or Go Home Tablets, IPads, smartphones are ubiquitous and people are glued to these handy screens. We just love anything that’s convenient to us and this is how we want to eat, travel, shop and do anything just by touching the screen in our palms. Smart mobile is the present and smarter will be the one who uses it to build business and grow. Ditto!! Ecommerce companies is what we are taking about or should we call them M-commerce as they are growing in the mobile space. But why this rapid increase in smartphone users? The answer is ever involving digital technology and future generations of mobile networks. And this is the fact retailers are leveraging upon. While domestic players Flipkart and Snap deal rule the market, the sector has also caught...
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...Organizations in India Dr. Neena Sinha Associate Professor, University School of Management Studies Guru Gobind Singh Indraprastha University, Kashmere Gate, Delhi, India Tel: 91-98-1805-6810 E-mail: dr_neenasinha@yahoo.com Dr. K.P.Kaushik Professor, National Institute of Financial Management Sector-48, Pali Road, Faridabad-121001, India Tel: 91-93-1236-0874 E-mail: kp_kaushik@hotmail.com Ms. Timcy Chaudhary (Corresponding Author) Research Associate, University School of Management Studies Guru Gobind Singh Indraprastha University, Kashmere Gate, Delhi, India Tel: 91-98-1856-8903 Abstract E-mail: timcy9@gmail.com The present paper examines the impact of mergers and acquisitions on the financial efficiency of the selected financial institutions in India. The analysis consists of two stages. Firstly, by using the ratio analysis approach, we calculate the change in the position of the companies during the period 2000-2008. Secondly, we examine changes in the efficiency of the companies during the pre and post merger periods by using nonparametric Wilcoxon signed rank test. While we found a significant change in the earnings of the shareholders, there is no significant change in liquidity position of the firms. The result of the study indicate that M&A cases in India show a significant correlation between financial performance and the M&A deal, in the long run, and the acquiring firms were able to generate value. Keywords: Mergers and Acquisitions, Corporate Performance, India, Wilcoxon...
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...AIB’s video on the topic and news of the Airtel Zero programme, has seen some of the biggest names in the Internet and media industries give their take on the issue. More importantly, last month India’s telecom regulator TRAI came out with a consultation paper on the growth of Over-the-top (OTT) players like WhatsApp or Skype and is looking at exploring a regulatory framework for these apps. In essence, Net Neutrality implies that all Internet data pack should be treated equally, that there should be no fast or slow lanes for Internet, or that users should pay differently for accessing some websites. While online activists and even big Internet companies in India like ClearTrip, Flipkart, have come out to support Net Neutrality, the debate isn’t really as simple when it comes to India. He says the telecos’ argument about loss revenue due to rise of OTT’s isn’t a legitimate one but adds that instead of going for more regulation TRAI can look to reduce some differential regulations for telecos to make things easier for them. There’s also a growing belief that TRAI hasn’t acted fairly when it comes to its paper on OTTs. The Internet and Mobile Association of India (IAMAI) has slammed TRAI saying OTTs are already regulated and governed by the IT Act. A statement issued by IAMAI President Subho Ray said: “It looks like TRAI, in its consultation paper, has copy-pasted from submissions of telcos. India has a robust and at times, overbearing IT Act.” Expressing support for Net Neutrality...
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...are used to produce and provide goods and services. India has a Mixed Market economy meaning it uses a variety of government regulation to control the economy, but relies primarily on market that forces to set prices and demand and uses general principles of capitalism. India is having a mixed economic structure. It is neither fully capitalist nor fully socialistic. It is neither completely an open system nor a fully free market system. The key variables in the choice of this economic design are: people's welfare, equitable distribution of wealth and income, a logical link between employment and incomes, restraining monopolies and concentration of power and wealth, and supporting health and education sectors through government subsidies and political strength. India has a mixed economy. Half of India's workers rely on agriculture, the signature of a traditional economy. One third of its workers are employed by the services industry, which contributes two-thirds of India's output. The productivity of this segment is made possible by India's increasing move toward a market economy. Since the 1990s, India has deregulated several industries, privatized many state-owned enterprises, and opened doors to Foreign direct investment. If you thought global heavy weights like China or the US would be India’s biggest trading partners, think again. Recently released country wise numbers for 2012-13 reveal that India is now trading most with the United...
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...List of Tables ....................................................................................................... III 1. Introduction .......................................................................................................... 1 2. Structure of the Thesis ......................................................................................... 1 3. Divestment ........................................................................................................... 1 4. Divestment in India ............................................................................................... 3 4.1 Coca-Cola ...................................................................................................... 3 4.2 Recent Divestment Cases .............................................................................. 4 4.3 Lessons Learned ............................................................................................ 4 5. Innocent’s Possible Market Entry in India............................................................. 5 5.1 Emerging Markets .......................................................................................... 5 5.2 Innocent ............................................................................................................
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...Riachuelo. The key similarities for comparison between Zara and H&M are that they are European based companies, are fashion forward at lower price retailers, and have a strong international expansion strategy. 1. Zara offers clothing and accessories for men, women, maternity, children, and baby. Zara offers trendy clothing choices designed based on international apparel tastes. In Brazil, Zara has 28 stores out of which 9 are in São Paulo. About 80% of Zara’s clothing is produced in the perimeter of Spain and its headquarters. 2. Lojas Renner is a Brazilian clothing and apparel department store chain that operates with 129 stores in 17 states of Brazil and 18 stores in the city if São Paulo. The target customer segment for Lojas Renner is women between 18 and 39 years old. Their stores are always located in strategic points where there is a great flow of the public such as shopping malls. They focus to compete with local, national and international retailers in offering fashionable products. About 6% of the clothing sold is imported from China, Pakistan, India, Argentina and Uruguay. Lojas Renner has three distribution centers in Brazil; one in Palhoça (Santa Catarina), another in São Bernardo do Campo (Grande São Paulo) and another in Jaboatão dos Guararapes (Pernambuco). The transportation is done by road to the different stores. 3. C&A is an international clothing and apparel chain which is considered to be the biggest department store chain in Brazil. They offer clothing and...
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