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Acquisition

August 2013

Merger vs. Acquisition vs.


Takeover
Merger
Two firms agree to combine their operations on a
relatively co-equal basis

Acquisition
One firm buys a controlling, 100 percent interest in
another firm with the intent of making the acquired
firm a subsidiary business within its portfolio.

Takeover
Special type of acquisition strategy wherein the
target firm did not solicit the acquiring firm's bid
Unfriendly acquisition

Acquisition
A corporate action in which a
companybuysmost, if not all, ofthe target
company's ownership stakes in order to
assume control of the target firm.
Acquisitions are often made as part of a
company's growth strategy whereby it is
morebeneficial to take over an existing firm's
operations and nichecompared to expanding
on its own.
Anacquisitionis the purchase of one business
or company by another company or other
business entity.
Acquisitions are often paid in cash, the acquiring
company's stock or a combination of both.

Biggest Acquisitions by Indian


Companies Deal
Acquirer

Tata Steel
Bharti Airtel
Hindalco
ONGC

Target Company Country value ($


Billion)
Corus Group plc
UK
12.98
Zain Africa
Kenya
10.7
Novelis
Canada
5.73
Kazakhsta
Kashagan Oilfields
5
n

Industry
Steel
Telecom
Steel
Oil

ONGC

Imperial Energy

UK

2.62

Petroleum
Extraction

Tata Motors

Jaguar Cars and


Land Rover

UK

2.3

Automobile

Honiton Energy

China

Energy

Port Terminals

Australia

1.97

Shipping

Algoma Steel
Oil & Gas Assets
(Marcellus Shale)

Canada
United
States

1.79

Steel

1.7

Oil and Gas

Tanti Group
and Arcapita
Bank BSCc
Adani
Enterprises
Essar Global
Reliance

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