This document outlines modules for a course on international trade and business laws related to mergers and acquisitions. It covers key concepts like definitions of mergers, acquisitions, and amalgamations. It discusses regulations and laws governing cross-border mergers from organizations like the WTO, EU, UK, and US. It also covers merger laws and processes specific to countries like India. The document provides an overview of the course structure and topics to be discussed.

1. INTERNATIONAL TRADE AND BUSINESS LAWS
MERGERS & ACQUSITIONS
Presented by Jayakar Bathula
LL.M-ITBL.
Mail- b.jayakar@nalsar.ac.in
NALSAR University of Law-HYD

2. CHAPTERIZATION
MODULE-I
1.1. INTRODUCTION
1.2. MEANING OF MERGERS & ACQUISITIONS AND AMOLGAMATIONS
1.3. PHYLOSOPHY OF MERGERS
1.4. EVOLUTIONS OF INTERNATIONAL TRADE UNIONS
1.5. PROS AND CONS OF MEGERS
MODULE-II
2.1. CROSS BORDER MERGERS: THE ROLE OF GATT AND GATS
2.2. CROSS BORDER MERGERS: THE ROLE OF WTO
2.3. COSTS OF OVER LAPING MERGER CONTROL JURISDICTION
2.4. FUNDAMENTAL OBJECTIVES OF- WTO: PREMERGER CONTROLL REGIME
2.5. DISADVANTAGES OF-WTO: PREMERGER CONTROLL REGIM

3. MODULE-III
3.1. MERGER LAWS IN EUROPEAN UNION
3.1.1. MERGER CONTROL IN EUROPEAN UNION
3.2. MERGER LAWS IN UNITED KINGDOM
3.2.1. GREATER TRANSPERENCY
3.3. MERGER LAWS IN U.S.A
3.3.1. FEDERAL LAWS AND STATE LAWS
3.4. MERGERS& ACQUISITIONS LAWS IN INDI
3.4.1. ROLE OF FICCI IN MERGERS AND ACQUISITIONS
MODULE-IV
4.1. MERGERS AND ACQUISITIONS IN INTERNATIONAL B.P.O-SECTOR
4.2. MERGERS AND ACQUISITION IN INTERNATIONAL BANKING SECTOR
4.3. M &A IN INTERNATIONAL TELECOMMUNICATIONS
4.4. MERGERS AND ACQUISITIONS IN AVIATION SECTOR
4.5. MERGERS AND ACQUISITIONS IN SPACE ACTIVITIES

4. MODULE-V
5.1. INDIA INTERNATIONAL MERGERS
5.2. INDIAN CONTRIBUTION TO INTERNATIONAL MERGERS
5.3. INDIA LOOK FORWARD
5.4. INDIA A GLOBAL APPROACH
5.5. CONCLUSION
.....
….

5. “MERGER”-Meaning
Merger is defined as combination of two or more companies in to a single
company where one survives and the other lose their corporate existence. The
survivor acquirers the assets as well as liabilities of the merged company or
companies.
According to Oxford dictionary the expression merger means combining of two
commercial companies in to one and merging of two or more business concerns
in to one-respectively.
Merger is just one type of Acquisition. One company can acquires other
company any other several ways including purchasing some or all of the
company’s assets or buying up its outstanding share stock.

6. “MERGER”
They end up the word “MERGER” may be taken as an abbreviation which
means:M-Mixing of
E-Entities
R-Recourses for
G- Growth
E-Enrichment and
R-Renovation.

7. “ACQUISITION”
ACQUISITION: Acquisition in general sense is acquiring the ownership in the
property, acquisition is the purchase by one company of controlling interests in
the share capital of another existing company, it means even after takeover
there is great changes in management of both the firms retain there is separate
legal identity.
THE FIVE RULES OF SUCCESSFUL ACQUISITION:
i, Contribute to the business : Technology, Services,
ii) Common core of unity: Market
iii) Temperamental fit: People in the acquiring company, respect the
product, the market and the customers of the company they acquire.
iv) Within a year or so the acquiring company must be able to provide
top management for the company it acquires.
v) With in the first year of the acquisition, it is important that a large
number of people in management group of the both companies receive
substantial promotion across the line that is from one of the former companies
to the other.

8. “AMOLGAMATION”
AMOLGAMATION: Halabury’s laws of England describe amalgamation as a
blending of two or more existing undertakings in to one undertaking, the
shareholders in the company which is to carry on the blended undertaking.
ExHindustan Computers Ltd, Hindustan Instruments Ltd, Indian Software
Company Ltd and Indian Reprographics Ltd in to an entirely new company
called HCL Ltd.

9. “PHILOSOPHICAL APPROACH”
Value is always going to have a relationship to price,
Not just for the acquisition by the numbers,
Something important the current management,
Bring resources,
Capital,
Regulatory expertise,
Marketing power,
Investments,
Creating enterprise value,
Proprietary process for creating and capturing of market value,
Enter in to the new market,

10. Cont…
i) Assess and evaluate the industry dynamics.
ii) Refine strategy in light of industry drivers.
iii) Identifying the characteristics of concentration risk.
iv) To evaluate potential opportunities.
v) Market utilizing company information .
vi) Strategic planning process growth plan.
vii) Identify dashboard of business metrics to measure performance.
vii) Initiate focused return on invested capital planning.
ix) Management evolution the right managers in the right roles.
x) Advise on critical areas of diligence to perform in advance .
xi) Monitor and advise company performance on a quarterly board level.

11. PROS &CONS
PROS:Net work economics
Research and Development
Other economics of Scale
Avoid Duplication
Regulation of Monopoly
Ex- T-Mobile merged with Orange in the UK.
CONS:Higher price
Less choice
Job losses
Diseconomies of Scale
Ex-Tesco and Sainsbury’s –Super markets in U.S.A.

12. DISADVANTAGES OF MERGERS &ACQUISITIONS
Legal expenses
Short term opportunity cost
Cost of take over
Potential Devaluation of Equity
Intangible costs
SHARE HOLDER DRAW BACKS:
Increase in cost to consumers
Decreased corporate performance and or services
Potentially lowered industry innovation
Suppression of competing businesses
Decline in equity pricing and investment value

13. CROSS BORDER MERGERS: THE ROLE OF GATT AND GATS
Massmart-South Africa:Botswana, Ghana, Malawi, Mauritius (closed January 2012), Mozambique,
Namibia, Nigeria, Tanzania, Uganda and Zambia.
Wall mart-USA :18 January 2011 Announcement of acquire 51% share of Massmart for
R148(Rand) cash .
The Competition Commission initially recommended that the merger be
approved unconditionally.
Recommendation was challenged at the Competition Tribunal by various
labour unions.( Congress of South African Trade Unions, South African
Commercial, Catering and Allied Workers Union) The unions appealed against
this ruling before the Competition Appeal Court .
The tribunal eventually approved the merger on 31 May 2011, subject to
certain conditions.

14. ON THE GROUNDS
GATT Article-III-Non Discrimination:-A rule that internal measures must not
give less favorable treatment to “like” foreign products, will achieve this antiprotection goal if “like [foreign] products” is defined to mean competitive
foreign products.
TRIMs Article-2 -Quantitative Restrictions:-Desiring to promote the expansion
and progressive liberalization of world trade and to facilitate investment across
international frontiers so as to increase the economic growth of all trading
partners, particularly developing country Members, while ensuring free
competition.
These provisions deal within goods while GATT Article I-National Treatment,
XVII refers the area of trade and services in the strategic regional mergers.
Section 12A of the South African Competition Act no of-1998-Public interest.
And the Merger has been justified by the Sub Section 3 of South African
Competition Act-1998.

15. CROSS BORDER MERGERS: THE ROLE OF WTO-PREMERGER OFFICE
(International Merger Control Regime)
McDonnell Douglas acquisition by Boeing which created significant political
conflict-1998.
Globalization and Overlapping Merger Control Jurisdiction.
The controversy between the United States and the European Union.
The potential public and private benefits of establishing an International Merger
Control Regime.
Many countries:Latin America.
Eastern Europe.
U.K.
European Commission.
Southeast Asia.
The People's Republic of China.

16. MINIMUM STANDARDS UNDER: WTO-PREMERGER OFFICE
AUSTRIA:
At least AS3.5 billion (approximately $270 million) and the annual sales, two of
the undertakings concerned at least AS5 million (Appro-$385,000).
BELGIUM: At least EUR 15 million or and at least two of the firms have
EUR40 million in annual sales.
IRELAND:IR10 million (approximately $12 million) or at least two parties
each have sales of IR20 million (approximately $24 million).
CANADA,
MEXICO,
SOUTH KOREA,

17. DISADVANTAGES OF WTO MERGER CONTROL REGIME
It is that such transactions would have to be notified to and reviewed by the
respective national regulators.
The consummation of the transaction would be further delayed because the
parties would have to respect the applicable waiting periods.
The merger control regime proposed here would be voluntary. It would be the
unilateral decision of the parties to notify their transaction to the WTO
Premerger Office.
Potential shortcoming of this proposal concerns the difficulty in defining the
standard used by the WTO Premerger Office in reviewing transactions.
SUBSTANTIAL STANDARDS:I, Regime prohibit the creation or strengthening of a dominant position.
II, Regimes which prohibit the substantial competition.
III, Regime consider both the effect on competition and other policy (1999);
concerns.

18. MERGER LAWS IN EUROPEAN UNION
European Union merger law is a part of the European Union Law, part
of competition law and it is designed to ensure that firms do not acquire such
a degree of market power on the free market.
Mergers and acquisitions are regulated by competition laws, European Union
has been enacted under Merger Regulation 139/2004, known as the "ECMR" .
Annual turnover of the combined business exceeds a worldwide turnover of
over EUR 5000 million and Community-wide turnover of over EUR 250
million must notify and be examined by the European Commission.
Art. 3(1), Regulation 139/2004, European Community Merger Regulation
states ……..
“To avoid the establishment of market structures which may create or
strengthen a dominant position.
Ex-GenCorp Ltd v. Commission .

19. ECMR-Cont…
Art. 2 of the ECMR says Firms who are engaged must be able to show that their
action nevertheless results in “technical and economic progress”.
Articles 3(2), 6(2), 13(3), 20(1) and 20(1a) of Regulation (EC) No 802/2004
require notifications, reasoned submissions, comments on the Commission's
objections, commitments offered by the undertakings concerned and the form to
be submitted to the Commissioning the format and with the number of copies
specified by the Commission in the Official Journal of the European Union.
Article 23(4) of Regulation (EC) No 802/2004 requires that documents or any
additional copies of documents submitted to the Commission electronically
should be submitted in the format specified by the Commission in the Official
Journal of the European Union.

20. MERGER CONTROL IN EU
Community dimension should not fall within the jurisdiction of the European
Commission.
Which undertakings do not meet the EU Merger Regulation criteria the
Commission has exclusive jurisdiction over "concentrations" with a
"Community dimension. An undertaking can acquire control over another
undertaking when it holds 50 per cent or less of the other's voting shares.
Joint ventures which are not in full function are subject to Articles 101 and 102
of the Treaty on The Functioning of the European Union (TFEU) (formerly
Articles 81 and 82 of the EC) and possibly also to national merger control laws.
Under Article 9, a merger which has been notified to the Commission under the
EU Merger Regulation can be referred back to a national competition authority,
at its request, where either:
The merger threatens to affect competition significantly within a market in the
Member State and the market concerned presents all the characteristics of a
distinct market.

21. MERGER LAWS IN UK:OFFICE OF FAIR TRADING
Fair Trading Act-1973 (FTA).
The Enterprise Act-2002 (EA).
Under section 22(3)(c) of the EA-Act, the OFT can refer a completed relevant
merger to review in Stack Exchange.
Section 73 of the Act the EA-Act, OFT finds that it is under a duty to refer a
merger to the Competition Commission.
Section 58 of the Act The public interest considerations that the Secretary of
State may take into account are set out.
In October 2008 the Secretary of State added by Order the maintenance of the
stability of the UK financial system.
The Secretary of State is also able to intervene in special public interest cases
where the standard jurisdictional thresholds relating to share of supply and
turnover is not satisfied.

22. GREATER TRANSPARENCY
In various ways, both directly and indirectly, the EA increased the transparency
and openness of merger reviews.
The merger entities required the Office of Free Trade (OFT) permission to
publish decisions and settings.
The merger parties has realistic responsible to appeal and a valuable source of
authority for businesses contemplating future transactions.
In addition, the new law required both the OFT and the CC to publish detailed
statements of guidance on their procedures and substantive rules.

23. MERGER LAWS IN U.S.A:
In 1890 the Antitrust law enacted to control the concentration of economic and
Industrial power.
Purpose of the antitrust legislation:
i)The core values of freedom,
ii) Individual choice,
iii) distributive justice,
iv) And pluralism,
Consequently small businesses and entrepreneurs were favored and
protected against the “encroaching economic leverage” of larger competitors.
Antitrust enforcement agencies in the U.S. are less likely to view mergers
and acquisitions more anticompetitive than their counterparts in other parts of
the world.

24. Cont…
Sherman Act-1890 broadly states that every contract, combination, or
conspiracy that restrains trade or commerce among the states, or with foreign
nations, is illegal and that every person who monopolizes, or attempts to
monopolize is guilty of a felony.
Section 7 of the Clayton Act-1950 is the primary legislation in the U.S.
governing mergers and acquisitions.
The Clayton Act applies to both mergers with immediate anticompetitive
effects and those that have a future probability of substantially reducing
competition.
Department of Justice (“DOJ”) and the Federal Trade Commission (“FTC”),
the primary administrative agencies of Mergers and Acquisitions in U.S.
Much of the merger enforcement activity in the U.S. is composed of premerger approvals and notification requirements.
In 1976 the U.S congress Improved the Antitrust Act to subject mergers,
having an effect in the U.S. the purpose of this Act is to reduce the costs
associated with having to reverse a merger or to seek remedies after a merger is
completed.

25. FEDERAL LAWS IN U.S.A
Section 13(d) of the Exchange Act, requiring the disclosure of an acquisition of
a class of voting equity in a public company is 5%.
Regulations 14A and 14C of the Exchange Act, governing solicitations of
shareholders in proxy contests and consent solicitations for the control of a
public company's board of directors.
Sections 14(d) and (e) of the Exchange Act, governing tender and exchange
offers.
Rule 13e-3 of the Exchange Act, regulating public to private transactions in
which existing shareholders or affiliates of a company squeeze out its public
shareholders.
Antitrust Improvements Act of 1976, as amended Acquisitions of US companies
must also comply with the anti-trust filing and waiting period requirements .

26. STATE LAWS IN U.S.A
General corporate law,
Anti-takeover laws,
Control share acquisition statutes,
Business combination or moratorium statutes,
Fair price statutes,
Constituency statutes,
Endorsements of defensive action,
The bidder.
The bidder's affiliates, officers or directors.
Rule 13h-1, Exchange Act-2011 States any person can acquires exchange-listed
securities that equal or exceed 2 million shares the acquisition of shares is part
of a tender offer or merger.
Cash tender offers are subject to certain requirements,(sections 14(d) and (e),
Exchange Act).

27. MERGER & ACQUSITION LAWS IN INDIA
The Companies Act-1956,Sec-390 to 394 are merger provisions govern a
merger of two or more companies under Indian law.
Since a merger essentially involves an arrangement between the merging
companies and their respective shareholders, each of the companies proposing
to merge with the other(s) must make an application to the Company Court
having jurisdiction over such company for calling meetings of its respective
shareholders and/or creditors.
The majority in number representing 3/4th in value of the creditors/shareholders
present and voting at such meeting agrees to the merger, then the merger, if
sanctioned by the Court.
The order of the Court approving a merger does not take effect until a certified
copy of the same is filed by the company with the Registrar of Companies.
Section 394 (4) (b) makes it clear A ‘transferor company’ would mean any
corporate, whether or not a company registered under the Companies Act
implying that a foreign company could also be a transferor, and a ‘transferee
company’ would only mean an Indian company.

28. COMPANIES ACT-2013
The acceptance of a scheme or Merger or Amalgamation by the Shareholders in
Sec-391(2) of the 1956-Act, is still precondition in the interest of the Nation
Under the 1956 Act the Courts were endowed with the power to sanction a
scheme of Merger or Amalgamation…..
According to New Act-2013, Powers has given to the High Courts would be
invested with the National Company Law Tribunal (NCLT), it helps in
shortening of time to obtain Sanctions.
Under the 1956 Act the Shareholders or Creditors to present in person or in
proxy for approving the Scheme of Merger….
According to New Act-2013, goes a step further provides a mode of voting, Sub
Clause (4) of Sec-230 states adoption of a scheme under Chapter XV by postal.

29. Cont…
Sub clause 5 of Sec-230 of the New Act States companies to send a notice of
meeting to approve a merger or amalgamation to varies Government Authorities
such as…
Central Government,
The Income Tax Deportment,
Registrar of Companies,
SEBI,
RBI,
Respective Stock Exchange,
Official Liquidator,
The Competition Commission…. With in the Period of 30Days.
Sec-234 of 2013 Act is the license to Merge in to Foreign Companies. Foreign
Company may Merge in to Indian Company, Indian Company may merge in to
Foreign Company.
Sec-233 of the 2013 Act State that Small Companies may not go to strickt
procedure, and may be completed on the members approval.

30. SEBI REGULATIONS:
The Securities and Exchange Board of India (the “SEBI”) is the nodal authority
regulating entities that are listed on stock exchanges in India.
Substantial Acquisition of Shares and Takeovers Regulations, 1997 has been
repealed by the Securities and Exchange Board of India, on October 23, 2011.
Regulation 13 of the Takeover Code provides for the timing of making a public
announce-ment for different modes of acquisition of shares of a target company.
Under Regulation 13(2) of the Takeover Code, an acquirer is required to make a
public announcement on the date of first such acquisition giving the details of
the proposed subsequent acquisition.
Regulation 23 says an open offer can-not be withdrawn once the public
announce-ment is made.
Regulation 23(1) (c) of the Takeover Code an acquirer shall not be permitted to
withdraw an open offer made pursuant to preferential issue of shares even if the
proposed acquisition through a prefer-ential issue is unsuccessful.

31. SEBI Cont…
Acquirer to make disclosure of its aggregate shareholding in the target company
if the acquirer acquires shares or voting rights which taken together with shares
or voting rights, if any, held by him and by persons acting in concert (“PAC”)
with him in such target company, aggregate to five per cent or more of the
shares of such target company.
Regulation 29(2)18 provides that an acquirer, who together with Person Acting
Concert, holds shares or voting rights entitling them to five per cent or more of
the shares or voting rights in a target company must disclose the number of
shares or voting rights held and change in shareholding or voting rights, even if
such change results in shareholding falling below five per cent.
Section 211(3C) of the Companies Act, 1956 has to be compulsorily filed with
the stock exchange and auditors’ certificate.
Issue of Capital and Disclosure Requirement Regulations-the acquisition of an
Indian listed company involves the issue of new equity shares or securities
under the provisions of Chapter VII.

32. THE ROLE OF FICCI…
The Competition act-2002 amended as Regulating of Mergers and Acquisitions
Sec-5 Deals with Combination of two or more Entities.
Sec-5a Deals with the Control of acquisition.
An Indian company with turnover of Rs. 3000 crores cannot acquire another
Indian company without prior notification and approval of the Competition
Commission.
Under Section -6, A foreign company with turnover outside India of more than
USD 1.5 billion (or in excess of Rs. 4500 crores) may acquire a company in
India with sales just short of Rs. 1500 crores without any notification to (or
approval of) the Competition Commission being required.
the draft Regulation 5(2) (vii) dealing with “renewed tender offer”, 5(2)(iii)
dealing with international combinations, and 5(2)(xii) dealing with an
acquisition by the Central Government or a State Government.

33. MERGERS & ACQUTIONS IN INTERNATIONAL IT- B.P.O SECTOR
The growth, pushing IT-BPO providers toward focused M&A strategies to build
and sustain growth momentum.
To fill gaps in service portfolios , geographic presence, to meet client demands
and compete with the global major entities Mergers & Acquisitions are more
Important in the Sector.
Wipro's acquisition of Opus CMC,(“string of pearl” )
Genpact's acquisition of Triumph Engineering,
Cognizant's acquisition of ING's Core Logic’s captives,
Tech Mahindra's acquisition of Hutch BPO,
TCS' and Wipro's acquisition of Citigroup's captives,
M&A strategies can help Indian players tap into $2 billion to $4 billion in
revenues each year,
the almost $100 billion seen in 2010,
The IT-BPO sector played major role in India during 2011-$1.4 billion, in 2012$3.4 billion,

34. Cont…
In the year 2005 two Indian listed companies, Tata Consultancy Limited (TCS)
and Tata InfoTech Limited (TIL) 14 initiated a process of amalgamation of TIL
into TCS with a view to expand customer base and a deeper penetration to gain
more efficient operations for both companies.
(TCS) announced on Tuesday that it had acquired French information
technology (IT) services firm Alti SA for €75 million (around Rs.530 crore).
In 2012, the IT and IT-enabled services sector saw cross-border merger and
acquisition transactions worth $1.4 billion (around Rs. 7,630 crore) in Europe
and North America.
Infosys Ltds acquisition of Lodestone,
MphasiS Ltd’s acquisition of Digital Risk Llc,
The scheme of amalgamation of TIL with TCS pursuant to section 391-394 of
the Companies Act-1956.

35. MERGERS &ACQUISITIONS IN INTERNATIONAL BANKING
Banking Mergers based on the five principles criteria:
(a) Reputation of the acquirer;
(b) The reputation and experience of any person who will direct the business of the
credit institution as a result of the acquisition.
(c) The financial soundness of the acquirer, in particular in relation to the type of
business pursued in the credit institution (Directive 2002/87/EC -on the
supplementary supervision).
(d) The credit institution will be able to meet and continue to comply with the
prudential conditions (2006/49/EC -on capital adequacy).
(e) Reasonable grounds for fearing money laundering or terrorist financing in
connection with the acquisition (2000/46/EC -on electronic money institutions).

36. Cont…
The European Directives are based on standards developed by the Basel
Committee on Banking Supervision (an International standard-setter for banking
regulation,- Section -2).
Article 39 indicates that the Commission may “submit proposals to the Council,
either at the request of a Member State or on its own initiative, for the
negotiation of agreements with one or more third countries .
Article 143 of the Credit Institutions Directive provides specific rules on the
consolidated supervision if the parent head office is in a third country.
European Banking Committee and European Financial Conglomerates
Committee have jointly controls the Banking Mergers.
The Basel Committee has as task to “enhance understanding of key supervisory
issues and improve the quality of banking supervision worldwide.
The Basel II capital framework has been implemented by the European
Community in Title V of the Credit Institutions Directive.
In 1975, the Basel Committee drafted the ‘Basel Concordat’,

37. INTERNATIONAL BANK ACQUISITIONS
BANK
Merrill Lynch.
Bear Streans
Country wide Financial
Alliance & Leicester
Catholic Building Society…etc
ACQUIRED BY
Bank of America
JPMorgan Chase
Bank of America
Grupo Santander
Chelsea Building Society…etc

38. MERGERS & ACQUISITIONS IN
INTERNATIONAL TELICOMMUNICATIONS
Bell Atlantic/NYNEX:The original seven Baby Bells that began operations in 1984.
Operations were internally "merged" under a single NYNEX brand on Jan. 1,
1994.
This combination began operations in July 1995 under the name Bell Atlantic
NYNEX Mobile.
The Bell Atlantic and NYNEX merged on April 1, 1996 with the value of $23
billions. And other two baby Bells SBC Communications and Pacific Telesis.
The "new" Bell Atlantic opened for business on Aug. 15, 1997.

39. Cont…
GTE was one of the world's largest telecommunications company with $25
billion Revenue in1997, 35 billion Customers access in USA, Canada,
Dominican Republic, Venezuela.
The Bell Atlantic - GTE transaction valued at more than $52 billion at the time
of the announcement was designed to join Bell Atlantic's sophisticated network
serving its densely-packed, data-intensive customer base in 13 states.
Virginias with GTE's national footprint, advanced data communications
capabilities and long-distance expertise.
Merged in to “Verizon's Formation: The Bell Atlantic GTE”
Approved by Federal Communications Commission (FCC), and clearance from
the U.S. Department of Justice (DOJ) and various International agencies on July
27, 1998.

40. Cont..
The MFJ-Long Distance Discount Service (LDDS) merged with Advanced
Telecommunications Corp In December 1992.
In 1993, LDDS merged with Metromedia and Resurgens Communications.
In 1994, LDDS acquired IDB Communications Group.
In 1995, the company acquired WilTel Network Services, and name changed
LDDS to World Com.
In 1996, WorldCom completed a merger with MFS Communications.
In May 1999, MCI WorldCom and SkyTel Communications, a nationwide
wireless messaging company merger ed.

41. MEGERS AND ACQUISITIONS IN AVIATION SECTOR
AIR FRANCE AND KLM:
Air France is French based Airline with significant International operations,
main activities….
Passenger airline transport,
Cargo transport ,
Maintenance services. Air France operates a hub-and-spoke network.
KLM is a Dutch-based full-service carrier operating worldwide,
main activities….
Passenger airline transport,
Cargo transport,
maintenance services ,
And the operation of charter and low-cost/low-fare scheduled services.
On 18 December 2003, Air France and KLM notified a framework agreement
according to which Air France has merge control of KLM.

42. Cont…
The combination allowed KLM customers to have access to more than 90 new
destinations while Air France customers will be offered 40 new routes.
The Air France/KLM deal - the first real merger in the European airline
industry.
2004 - Merged with KLM Royal Dutch Airlines changing the company name
to Air France KLM although the two airlines still operate as separate airlines.

43. MERGER OF UNITED AIRLINES WITH U.S AIRWAYS
The two airlines operates separate websites and reservation systems. passengers
are able to earn and redeem miles when traveling on either carrier, as well as
reciprocal American Admirals Club and US Airways Club benefits.
Together, the two airlines are expected to offer nearly 6,700 daily flights to more
than 330 destinations with about 950 planes and employ more than 100,000
workers.
The merger has the supported by most major labor groups, including the Assn. of
Professional Flight Attendants, which represents 16,000 attendants at American
Airlines and faced an uncertain future after AMR Corp. In 2011.
BENEFITS:
Hub-to-Hub Nonstop Markets.
Washington, D.C. and Baltimore Nonstop Markets.
East Coast Connect Markets.
International Routes.
Corporate and Government Business.
Airline Service Concentration.

44. Cont…
AIR BERLIN:2006 - Acquired dba
2007 - Acquired LTU
2009 - Acquired LGW
2009 - Acquired Belair
2011 - Acquired flyNiki
DELTA AIR LINES:1924 - Started as Huff Daland Dusters
1972 - Purchased Northeast Airlines
1987 - Merged with Western Airlines
2008-2010 - Merged with Northwest Airlines kept Delta name

45. AVIATION MERGERS IN INDIA
The Jet-Sahara Mega Merger-on On 20th April , 2007.
The Air Deccan-Kingfisher Merger-May, 2007 .
The Air India-Indian Air Merger-in April, 2007.

46. MERGERS AND ACQUISITIONS IN SPACE ACTIVITIES
In the 1960s, American manufacturers went through a first wave of mergers in
Aviation activities.
Martin joined forces in 1961 with the nonaerospace materials firm American
Marietta to form Martin Marietta Corp.
North American Aviation merged with automobile-parts supplier Rockwell
Standard and established Rockwell International Corporation in 1967.
General Dynamics General Aviation Aircraft maker Cessna, acquired by
Textron Inc- missile business .
In late 1996 Boeing acquired Rockwell International’s space and defense units,
in 1997 it merged with McDonnell Douglas to establish the world’s largest
aerospace company.
In October 2000 Boeing acquired three units from Hughes Electronics-Space
and Communications Company, Hughes Electron Dynamics, and Spectrolab.
In France, Sud Aviation, Nord Aviation, and SEREB merged in 1970 as
Aerospatiale to form the country’s strongest aerospace firm.

47. Cont…
In May 2000 Matra Marconi Space and the space divisions of Dasa were
combined in a joint venture under the name Astrium, 50 percent of which was
owned by Aerospatiale Matra and BAE Systems and 50 percent by Dasa.
Astrium was the first Trinational space company, with facilities in France,
Germany, and Great Britain.
In1960s when six European countries – Belgium, France, Germany, Italy, the
Netherlands and the UK – formed the European Launcher Development
Organization (ELDO) to develop and build a heavy launcher called ‘Europa’.
In 1962, those same countries, plus Denmark, Spain, Sweden and Switzerland,
formed the European Space Research Organisation (ESRO) to undertake mainly
scientific satellite programmes.
ESA was founded in 1975 through the merger of the European Space Research
Organization (ESRO) and the European Launcher Development Organization
(ELDO).
On April 29, 2004, Alcatel and Finmeccanica SpA cleared the last hurdle in the
merger of their satellite manufacturing and services units.

48. Cont…
Alcatel Alenia Space Alcatel :67%, Finmeccanica 33%, Head quartered in
France this entity’s activities focus on the….
Design,
Development and manufacturing of space systems,
Satellites,
Equipments,
Payloads,
Associated ground systems.
Telespazio Finmeccanica: 67%, Alcatel: 33%, This entity with head quartered
in Italy, concentrates on…
operations and services for satellite solutions
control and exploitation of space systems ,
networking,
multimedia and earth observation.
From July 1, 2005 Alcatel Alenia Space and Tele Spazio are fully operational
and ready for business.

49. Any clarifications Please…….?
By
Jayakar Bathula
LL.M-ITBL
Mail- b.jayakar@nalsar.ac.in

50. Thank you….