MERGERS AND ACQUISITION

• KAVITA KURADE PG 09

• DHIKSHIT SHETTY PG 10
MERGER & ACQUISITION
 MERGER ACQUISITION

Combination of When one company

two sized clearly purchases
companies
another and
combined to form
becomes the new
a new company
owner
 TYPES
VERTICAL

HORIZONTAL

CONGLOMERATE
 SYNERGY

COST REVENUE FINANCIAL

SYNERGY SYNERGY SYNERGY
HORIZONTAL ACQUISITION OF
CORUS BY TATA STEEL
•Tata steel , India second largest private sector steel
company was established in the 1907.

•Tata steel which falls under the umbrella of Tata sons has
strong pockets and strong financials to acquisition.

•Invested in various other businesses as well such as oil

mills, airlines, motors consultancy services etc.
 It was formed on 6th October 1999, through the merger of
two companies, British steel and koninklijke hoogovens.
 Company had four divisions: strip product, long product ,
aluminium and distribution and building system.
 Corus has manufacturing operations in many countries with
major plants located in the UK, the netherlands, Germany
,France , Norway and Belgium supplier to many of the most
demanding markets world wide including construction,
automotive, packaging, engineering
REASON OF ACQUISITION

FOR
FOR
BUY-
SALE-
TATA
CORUS
STEEL
Finding A Target Business

Appointing Advisers
Negotiating terms
Due Diligence
Completion
 TATA-CORUS DEAL
 Tata acquired Corus on 2nd April 2007
The deal price was US $ 12.11 Billion
 On 17th Oct 2006 Tata bid was priced at 403 pence per
share (Market Price per share at that time was 390 pence)
 Tata Steel winner of the auction for Corus declares a bid of
608 pence per share
 Tata surpassed the financial bid from Brazilian Steel Maker
– COMPAHNIA SIDDERUGGICA NACIONAL (CSN) – of
603 pence per share
Was the Acquisition a Success
or a Failure?
Reasons for Success or Failure