MERGER

A merger happens when two firms, often of about the

same size, agree to go forward as a single new
company rather than remain separately owned and
operated. This kind of action is more precisely
referred to as a "merger of equals."
 Acquisition
When one company takes over another and clearly
established itself as the new owner, the purchase is
called an acquisition. From a legal point of view, the 
target company ceases to exist, the buyer "swallows"
the business and the buyer's stock continues to be
traded. 
Objectives Of M&A
Competition
Market Share
Efficiency
Survival
BENEFITS OF M&A
Economics Of Scale
Acquiring new technology 
Improved market reach and industry visibility
Staff reductions
Tata Corus acquisition

largest and India's 2ND largest Tata Steel, formerly

known as TISCO (Tata Iron and Steel 
Company Limited), was the world's 56th nd largest
steel company with an annual crude steel capacity of
3.8 million tonnes. It is based in Jamshedpur, 
Jharkhand, India. It is part of the Tata Group of
companies.

The company is listed on BSE and NSE; and employs

about 82,700 people (as of 2007).
Continue….

On 20 October 2006 the board of directors of

Anglo-Dutch steelmaker Corus accepted a $7.6
billion takeover bid from Tata Steel.

Challenged by CSN, the Brazilian steel maker.

on January 30, 2007, Tata Steel purchased a
100% stake in the Corus Group at 608 pence
per share in an all cash deal
companies

Tata was one of the lowest cost steel producers.

Corus which was a high value product manufacturer .
Tata had a strong retail and distribution network
in India and SE Asia. Hence there would be a
powerful combination of high quality developed and
low cost high growth markets.
Technology transfer and cross-fertilization of
R&D capabilities
THANK YOU