This document discusses a case study on the acquisition of Jaguar and Land Rover by Tata Motors. It provides background on both companies, including details on their profiles, products, revenues, and profits. It then examines the key features of the acquisition, noting that Tata Motors acquired two iconic British brands. The summary discusses the deal itself and potential benefits, as well as the road ahead for the combined company.
1. Motilal Nehru National Institute of technology
School Of Management studies
Presented ByUjjwal Mishra 2012MB01
Satish Aarya 2012MB02
Nidhi Kumari 2012MB04
Tarun Talreja 2012MB05 1
2. Table of Content
Merger and Acquisition
Types of M & A
Reasons for M & A
List Of Merged Companies
List Of Acquired Companies
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3. Merger
A merger refers to the process whereby at least two
companies combine to form one single company.
ACQUISITION
When a smaller company gets bought by a larger
one, who then acquires all of their stock and swallows it
as part of their business.
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4. Types of Merger
Horizontal Merger: It refers to the
merger of two companies who are direct
competitors of one another. They serve the
same market and sell the same product.
Vertical Merger: It is effected either
between a company and a customer or between
a company and a supplier.
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5. Conglomeration: It refers to the merger
of companies, which do not either sell any
related products or cater to any related market.
Product-Extension Merger: It is
executed among companies, which sell
different products of a related category. They
also seek to serve a common market.
Market-Extension
Merger: It
occurs between two companies that sell
identical products in different markets. It
basically expands the market base of the
product.
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6. Types of Acquisition
Asset Acquisition: If the assets to be
acquired are not held in a separate legal entity, they
must be purchased in an asset sale, rather than a stock
sale, unless they can be organized into a separate
legal entity prior to sale.
Stock Acquisition: In a stock
purchase, all of the assets and liabilities of the seller
and sold upon transfer of the seller’s stock to the
acquirer. As such, no tedious valuation of the seller’s
individual assets and liabilities is required and the
transaction is mechanically simple.
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7. Reasons for Merger & Acquisition
Revenues: By combining the two
companies, we will realize higher revenues then if
the two companies operate separately.
Expenses: By combining the two
companies, we will realize lower expenses then if
the two companies operate separately.
Cost of Capital: By combining the two
companies, we will experience a lower overall cost
of capital.
Positioning: Taking advantage of future
opportunities that can be exploited when the two
companies are combined
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8. Gap
Filling: One company may have a major
weakness (such as poor distribution) whereas the
other company has some significant strength. By
combining the two companies, each company fillsin strategic gaps that are essential for long-term
survival.
Organizational Competencies:
Acquiring human resources and intellectual capital
can help improve innovative thinking and
development within the company.
Broader Market Access: Acquiring a
foreign company can give a company quick access
to emerging global markets.
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9. List Of Merged Companies
IBP-IOL
Tata Steel
- Corus
Satyam-Tech Mahendra
Air India - Indian Airlines
iGate - Patni Computers
Global Trust Bank - Oriental bank of Commerce.
Mahindra Logisoft Business Solutions Ltd. - Tech
Mahindra Ltd.
Fortis Healthcare (India) Ltd. - Fortis Healthcare
International Pvt. ltd.
Pipetel Communications Pvt. Ltd. - Net 4 India Ltd.
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10. List Of Acquired Companies
Aditya Birla - Columbian Chemicals
Mahindra & Mahindra - Ssangyong
The Vedanta - Cairn acquisition
GVK Power - Hancock Coal
Essar Energy’s - Stanlow Refinery
Vodafone - Hutch Essar
ONGC - Imperial Energy
HDFC Bank - Centurion Bank of Punjab
Tata Motors - Jaguar Land Rover
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12. Tata Motors Profile
Headquarter- Mumbai
Chairman-Ratan Tata
Parent- Tata Motors
Subsidiaries- jaguar & land rover
Products- automobiles and engines
Total revenue- Rs.123,133 crores
Total Profit- Rs.9,274 crores
India’s Largest automobile company
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13. Jaguar and Land Rover’s Profile
Headquartered- Coventry, England
Chairman- Ratan Tata
Parent Company- Tata Motors
Luxury & Sports car manufacturer Company
Net revenue- 9,906 million
Net Profit- 1,043 million
Considered as a British icons
Jaguar manufactured luxury cars
Land Rover manufacture SUVs.
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