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Merger
In business or economics a merger is a combination of two companies
into one larger company.
Such actions are commonly voluntary and involve stock swap or cash
payment to the target.
Acquisitions
An acquisition, also known as a takeover, is the buying of one
company (the ‘target’) by another.
An acquisition may be friendly or hostile
Types of M&A
• Horizontal merger - Two companies that are in direct competition
and share the same product lines and markets.
• Vertical merger - A customer and company or a supplier and
company. Think of a cone supplier merging with an ice cream
maker.
• Market-extension merger - Two companies that sell the same
products in different
Vodafone
purchased stake in
Hutch
(Hutchison Telecom International)
for
USD 11.08 billion
‘Pink is now red as Hutch is Vodafone in India from
September 21, 2007, officially announced in Mumbai.
Why take over
Vodafone need
• Vodafone wants to expand into the asian markets. India has
2nd largest market for mobile. It is growing at the rate of 6
million subscribers per month.
• Driving additional value in Hutch Essar
• Increases Vodafone’s exposure to high growth
• emerging markets
• Hutch Essar delivers a strong existing platform
• in India
hutch want to sell
Major Reasons for sell are :
Hutch-Essar : mutual distrust
The right time to quit Indian operations to finance other operations. Li
Ka-Shing was the 10th richest man globally in 2006. In the early
1990s, he sold his stake in Star TV to `Rupert Murdoch for $825
million.
P •
•
Type
Industry
Limited
Mobile telecommunications
o • Predecessor Hutchison Essar
• Founded 1994
r • Headquarters Mumbai, Maharashtra, India
t • Products Mobile networks, Telecom
f services, Etc.