domingo, 24 de octubre de 2010

Understanding M&A through examples!

Merge and acquisitions, what an interesting way to growth and to increase cross border activities. This process call Merge and Acquisitions, knowing that each one is different, is the perfect way to open up markets. Talking about merging process I can say that this combination give the two parties larger databases and also more access to many more geographies through the partner company. Talking now about acquisition the only company who gain benefits it’s the buyer or the one that will stay in the market.
Now if we go to India, an amazing country with high growing rates, we will see that in this amazing country a lot of mergers and acquisitions are having place. I am going to mention three different examples.
Bharti Airtel acquired telecom operator of Africa "Zain" for USD 10.7 billion (INR 493.56 billion)
Fortis Healthcare one of the biggest healthcare chain of India acquired 23.9% stake in parkway holdings of Singapore based for USD 685.3 million (INR 31.10 billion).
Godrej Consumer acquired the Indonesian household insecticide maker Megasari Makmur Group for INR 12 billion.
Here we can see that a merging process is when the company that is purchased become a subsidiary of the aquaring company. Lets say that there is two different companies. Company X and company Y. So the company X and company Y. So Company X + company Y = ( company x + company y), this means that both companies still exisiting and for the eyes of the people the company y will maintain its former apperearence, but this company will be owned and control by company x.
In the case of the acquisition what happens is that one company disappear. Lets see it in another equation, company x and company Y. So company X + company Y = Compsny C. This means that there is a combination of two companies in which one of them ceases to exist.
This is how a lot of companies are growing and internationalizing. And india is the country with more M&A in the world.
ATICLES BASE. MERGER AND ACQUISITION IN THE CONTEXT OF INDIAN SCENERIO. RETRIEVED FROM : http://www.articlesbase.com/international-studies-articles/merger-and-acquisition-in-the-context-of-indian-scenerio-3218851.html#ixzz13LSlZKKN

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