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JAYANT JCD

JAYANT JCD

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Published by Jayant Dwivedi
equitation and merger
equitation and merger

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Categories:Business/Law
Published by: Jayant Dwivedi on Nov 24, 2010
Copyright:Attribution Non-commercial

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11/24/2010

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MERGERS & ACQUISITIONSCASELET: TATA CORUS DEALBy: Kapil Chaudhary
 
A
MERGER 
happens when two firms, often about same size, agree togo forward as a new single company rather than remain separatelyowned & operated by pooling all their resources together, to create asustainable competitive advantage. For example,both Daimler-Benz &Chrysler ceased to exist when two firms merged, and a new company¶Daimler-Chrysler¶ was created.
W
hen a Company takes over another one & clearly becomes the newowner ,the purchase is called µACQUISITION¶. Unlike mergers,acquisitions can sometimes be unfriendly. i.e., when a firm tries totakeover another by adopting hostile measures.
 
Horizontal mergers:
 A horizontal merger involves two firms operating and competing in the same kind of business activity.
Textiles firm merges raw materials firm.
-
Example: Exxon -Mobil
V
ertical mergers:
V
ertical mergers occur between firms in different stages of production operation.
-
Example: Helene Curtis and Unilever 
C
onglomerate Mergers:
-
C
onglomerate mergers involve firms engaged in unrelated types of business activity-
Example: General Electric buying NBC television
C
oncentric Mergers-
Based on specific management functions where as the conglomerate mergers arebased on general management functions
-Example: Citigroup (principally a bank) buying Salomon SmithBarney (an investment banker/stock brokerage operation

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