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Biggest Mergers and Acquisitions

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BIGGEST

MERGERS AND
ACQUISITIONS
PRESENTED BY
SAMIKSHA BHATIA(0221MBA054)
ANUJ AGGARWAL(0221MBA047)
HARSH RAJPUT(0221MBA021)
WHAT IS MERGER?

 A merger is a corporate strategy of combining


different companies into a single company in order
to enhance the financial & operational strengths of
the organization.
 Merger are commonly done to expand a companies
reach, expand into new segments or gain market
share.
TATA AIG MERGER

 Tata Group is an Indian multinational conglomerate manufacturer of automobiles,


airplanes and other products, headquartered in the city of Mumbai, India. Founded
in 1868 by Jamshedji Tata, the company gained international recognition after
purchasing several global companies. It is one of the biggest and oldest industrial
groups in India.
 Air India is the flag carrier airline of India, headquartered at New Delhi. It is
owned by the Government of India, which has approved the sale of Air India
Limited to Talace Private Limited, a Special-Purpose Vehicle (SPV) of Tata Sons.
The sale is expected to close in December 2021.
REASONS WHY AIR INDIA IS GOING
DOWNHILL
 Less income in passenger revenue.
 Low monetisation of assets.
 Non-availability of proper aircrafts.
 Mismanagement in granting bilateral agreements withforeign countries.
 Loss making international operations.Mismanagement on manpower.
VODAFONE IDEA MERGER
 Vodafone Idea is an Indian telecom operator with its headquarters based in 
Mumbai and Gandhinagar.
  It is an all-India integrated GSM operator offering 2G, 3G, 4G, 4G+, VoLTE
service.
  As of 31 October 2022, Vi has a subscriber base of 245.62 million making
it third largest mobile telecommunications network in India and 
11th largest mobile telecommunications network in the world.
  The company was created on 31 August 2018 by the merger of 
Vodafone India and Idea Cellular, to form a new entity named Vodafone Idea
Limited.
TYPE OF MERGER
 The merger between Vodafone and Idea is a example of Horizontal
Merger.•
 Horizontal Merger: When two firms operating in the same line of
business and catering to the same segment of customer or operating
at the same stage of industrial process merge together it is known to
be Horizontal type of merger. In simple words when two competing
firms merge together it is a horizontal merger.
CHALLENGES AND ISSUES

 Loose customers
 Hard to pay salary to employees
 Debt repayment
 Competitor (JIO)
SONY AND ZEE MERGER

 The Zee-Sony Merger has culminated in to making them


as the second largest entertainment network in India.
 SonyPictures Networks India is a subsidiary of Sony
Corporation's Sony Pictures Entertainment.
 Themerger had been announced on 22nd September and
had been finally closed on 21st December.
PURPOSE OF MERGER

 Sony Pictures Network has been looking for a collaboration with an


Indian Partner to shape its business since it had been facing tough
competition from Disney-Star collaboration.
 It had been previously in discussion with Reliance owned Viacom
which did not brought any outcome and was called off.
 One of the reasons for executing the merger is that Zee had a larger
network viewership than Sony.
 While Zee Entertainment is still struggling for cash to bankroll its expansion
plans, the merger with Sony Pictures will give the combined entity greater access
to cash flows and capital heft. Currently, as per the relative valuation ratios, Zee
should have a stake of around 61.25% in the merged entity. However, it is Sony
Pictures that will bring in the much needed cash into the combined venture.
THANK YOU

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