The Indian chemical industry is at an inflection phase. Falling global crude prices, tough competition and weaker fundamentals will drive mergers and acquisition activities in the industry. While commodity chemicals will likely comprise most of the M&A activities, significant volumes are ... Views: 887
When two big giants form a conglomerate it can change the dynamics of an industry; precisely what will happen in the chemicals and agricultural industries globally. Dow Chemical and DuPont, the two largest US chemicals companies, have agreed to a $130 billion merger of equals in an all-stock ... Views: 641
While there are several valuation techniques, one must choose the one which suits the both the buyer and the seller.
Valuation in any merger is the amount a buyer is willing to pay the seller and if the latter is willing to accept the deal amount. There are different techniques to value a ... Views: 705
Pick up the right negotiating skills to make your deal a success
Be it buying groceries or buying or selling a company, negotiations matters the most to get the best deal. The best practices of deal makers depend on the specifics of the deal. Valuation is the first and foremost phase of deal ... Views: 649
Proper due diligence at every stages will make the M&A a grand success
By planning the merger activity carefully and analyzing every issue that may arise, the target company will be better prepared to successfully consummate a sale of the company. The buyer is concerned not only with the ... Views: 838
Introduction
Diversification today most executives and boards realize how difficult it is to add value to businesses that aren’t connected to each other in some way. Yet too many executives still believe that diversifying into unrelated industries reduces risks for investors or that ... Views: 760
Context of merger and rising NPAs
The steep rise in bad loans or non-performing assets (NPAs) of state-run banks has weighed on the economic development of the country as these banks hold more than two-thirds of deposits and advances in India’s banking industry. The 27 public sector banks ... Views: 758
CURRENT TRANSACTION:
Adani Power Limited, a subsidiary of Adani Enterprises Ltd and a part of Adani Group, had executed a definitive agreement for the acquisition of 100% shares of the Udupi Power Corporation Limited from Lanco Infratech Limited- a Rs.6,000 crore deal.
LANCO INFRATECH ... Views: 611
In the Indian e-start-up business space, Quikr has become everyone's envy. The pace at which it is acquiring companies to grow and diversify is remarkable. Since January last year, it has acquired around 8 companies, and the latest, it is buying two arms of HDFC's brokerage business – HDFC ... Views: 895
Facts of the Case
The appellant-assesse, is a private limited company running a super specialty hospital in Thrissur, Kerala. The said Company has 7 shareholders all belonging to the same family. Earlier a partnership firm was formed among 5 out of the 7 shareholders of the Company holding ... Views: 657
Class Action Suit became reality for Indian investor(s)/depositor(s) under new Companies Act, 2013 which is also known as Representative Suit. This kind of lawsuit is very popular in countries like USA, UK, Singapore, Canada, Austria and other European Countries. Class Action Suit gained ... Views: 691
The Companies Act 2013 (New Act), which was substantially made effective from April 1, 2014, has the potential and capability to be a historic milestone for implementing Mergers & Amalgamations(M& A). So far, the provisions relating to M&A under the New Act are yet to be notified.
These are ... Views: 689
Bharti Airtel is engaged in the business of providing global telecommunications with operations in 17 countries across Asia and Africa. In India, the Transferee Company products Offerings include 2G, 3G and 4G wireless services, mobile commerce, fixed line services, high-speed home broadband, ... Views: 739
Exit Planning is a process involving developing and planning an optimum time to exit a business with the objective to achieve the maximum return out of the accumulated wealth made over the tenure of the business.
I. Planning an exit strategy:
If you are setting up a business you will have ... Views: 680
The management of the company doing the acquisition must have a clear and well-defined strategy for their specific business
In order to make a merger work, it is pertinent to have a sound strategic planning so that maximum benefit is taken out from the merger. Before signing on the dotted ... Views: 692
After two years of negotiations with minority shareholders, facing regulatory hurdles and a lingering Rs 30,000-crore (including penalty) retrospective tax issues, the merger of cash-rich Cairn India with Vedanta is finally done. The merger – a $2.3 billion all-share deal -- will consolidate ... Views: 666
Introduction:
In the case of merger and demerger, two dates are crucial, the "Appointed Date" and secondly the "Effective Date". Corporate managers spend a lot of time to plan the exact timing of these dates. ‘Appointed Date’ is normally arranged to secure the interests & objects of the ... Views: 1000
Cognizant has successfully bought Us-based TriZetto for $2.7 billion in cash primarily owned by private equity group Apax. BlueCross BlueShield of Tennessee and Cambria Health Solutions, both minority shareholders, will also sell their stakes. Cognizant has financed the transaction through a ... Views: 749
The country’s third-largest software services company, Wipro has been acquiring companies to grow its digital technology strength. The company’s new chief executive officer (CEO) Abidali Neemuchwala had acquired two companies --- HealthPlan Services and Appirio last year for over $1 ... Views: 787
India is the second largest producer of textiles and garments in the world. The textile and allied product’s earnings from export was $37.14 billion in FY16, or 13.71% share of India’s total exports of $262.29 billion in FY16. Currently, the size of the textile industry is estimated at around ... Views: 951
Shares of Sun Pharma witnessed massive selling pressure, plunging over 16 percent after the drug major said it expects to take a hit on profit for the fiscal 2015-16 mainly due to integration process with Ranbaxy. The question which has been raised is as follows:
Whether the merger is ... Views: 717
In April 2014, Sun Pharmaceutical acquired 100% of Ranbaxy Laboratories for $4 billion to create world’s fifth largest specialty generic pharma company. Under these agreements, Ranbaxy will merge into Sun Pharma and the shareholders of Ranbaxy will receive 0.8 shares of Sun Pharma for each share ... Views: 616
The Tax department has fixed its eagle eye on yet another target — this time it's inbound mergers and acquisitions (M&As). Forty companies are said to have received notices and the total tax demand could exceed Rs 4,000 crore, according to estimates.
Income tax isn't levied on inbound foreign ... Views: 617
The government’s unique mission -- Housing for All by 2022 --- has led to creation of more focus entities in the industry with plans of expansion to grab the opportunities that are going to come. As a move in that direction, Reliance Capital has announced that the Board of Directors has approved ... Views: 651
Leadership & Quotes: Ashish Kashyap
“Wherever there is a big problem there is an opportunity” ““build+invest+acquire”
Ashish Kashyap, founder and chief executive officer of ibido Group is a quintessential start-up entrepreneur in the Indian internet space. Within a span of few years, he ... Views: 624
Mergers are supposed to make companies more productive. They’re meant to get rid of inefficiencies, grow revenues and result in a stronger bottom line. But sometimes things don’t go according to plan. The new team won’t buy in, middle managers are unhappy with their pay, and the acquired company ... Views: 536
Mahindra & Mahindra Ltd approved a scheme of demerger of the Two Wheeler undertaking of Mahindra Two Wheelers Limited and transfer and vesting thereof as a going concern into M&M.
Mahindra & Mahindra Limited (M&M) is the listed company, engaged in the business of sale of tractors, general ... Views: 584
In order to bring in efficiency in the way of functioning of public sector undertakings, the government is taking the merger routs. The Cabinet has approved the merger of SBI with its five associates, all state-owned oil companies will become one, and now, the government’s six consultancy firms ... Views: 705
The merger agreement sets forth, preconditions to closing, closing procedures, and post-closing obligations
Moreover, when one is dealing with billions of dollars, every aspect of the deal and the risks must be noted down in the document.
In a merger or acquisition transaction, there are ... Views: 555
Oil and gas companies across the world, and especially in the US, inked a series of new mergers and acquisitions (M&As) last year after one year of moribund deal activities in 2015. As crude oil prices stabilized in a range between $40 and $55 a barrel, companies in the United States and other ... Views: 514
Turkey is ranked among the largest farm equipment markets globally and is a leading tractor market in Europe. Despite Turkey being part of the Syrian war at the moment, the farm equipment market is still largely unaffected. Mahindra is betting high on this market and claimed there will be no ... Views: 549
When businesses were simple and transactions were local, accounting standards were simple and local GAAP (generally accepted accounting principles) were sufficient. Today, businesses have become complex and a globalised world needs comprehensive accounting standards that can be consistently ... Views: 542
Adani Power Ltd (APL), the country's largest private sector power generation company, has acquired Lanco Infratech’s Udupi plant for Rs 6,000 crore. The installed capacity of the plant is 1,200 MW. APL’s installed capacity is capacity at present is 10,440 MW, comprising of 4,620 MW at Mundra in ... Views: 565
“We decided that we weren't going to be in any business that wasn't global. You're not safe if you're only at home. You can't compete in a small pool anymore"
Born on 1st May 1955, in Mumbai, Anand Mahindra is the son of the second daughter of K.C. Mahindra, the founder of Mahindra Ltd. His ... Views: 553
Leadership & Quotes: Ashish Kashyap
“Wherever there is a big problem there is an opportunity” ““build+invest+acquire”
Ashish Kashyap, founder and chief executive officer of ibido Group is a quintessential start-up entrepreneur in the Indian internet space. Within a span of few years, he ... Views: 622
Bartronics Asia Pte. Ltd. (BAPL) wholly owned subsidiary of Bartronics India Ltd. had acquired 51 per cent stake in Systems America Inc. (SYAI), is headquartered in Pleasanton, California, US and listed in the OTC Equities category in the USA. SYAI was founded in 1994. SYAI is the leader in ... Views: 599
In order to expand its paper business, US-based International Paper (IP) acquired 75% stake in Hyderabad-based AP Paper Mills for up to $423 million (Rs 1,888 crore) in October 2011. The deal included:
Purchase of a 53.46% stake from the company’s promoters—L.N. Bangur and his family for $257 ... Views: 546
LEGAL CORNER - February 2016 - CASE LAW:
Topic:
Goodwill value cannot be challenged where slump sale includes the sale of goodwill & such agreement is beyond any doubt.
Facts of the Case:
The Assessee Company (formerly known as “Saijem Triune Energy Pvt. Ltd.) was incorporated during ... Views: 710
In order to consolidate its position in the chemicals business, Mumbaibased Clariant Chemicals (India) Ltd. (CCIL), a specialty chemical major had acquired Gujaratbased Masterbatches maker Plastichemix Industries (Plastichemix) for Rs 1350 million (approx $22 million). Masterbatches are solid ... Views: 682
Over the last decade, the Internet has changed the way of living of people. Due to the proliferation of Internet use, everything in the world is getting online. From Good Morning to Good Night, everything is available on the internet all you need is to ‘Google it”. India is no exception to it. ... Views: 795
CSL Limited has closed its transaction to acquire Novartis global influenza vaccine business for a cash consideration of US$275 million. The combined business will create the second largest influenza vaccine business in the US$4 billion global industry and will have manufacturing plants in the ... Views: 596
In order to hive off some non core business and pare debt, DLF concluded the sale of luxury hospitality chain Aman Resorts for an enterprise value of $358 million (approx Rs 2,230 crore). The country’s largest real estate company also got a refund of Rs 675.8 crore from the Delhi Development ... Views: 678
Unilever announced on 19 July 2016 that it has signed an agreement to acquire Dollar Shave Club (DSC), a Venice, California-based company at a huge premium. Michael Dublin, the founder of the Dollar Shave Club, will remain CEO for running the razor business as an independent subsidiary. It's ... Views: 542
While M&A due diligence is largely confirmatory, joint venture due diligence is informatory
For any joint venture to succeed, it is essential to conduct proper due diligence. An organisation must create an assessment model in due diligence, which will undertake a risk assessment by ... Views: 1910
This is true in every walk of life, especially so in the organizational context, where behaviors are a manifest of the conflicts between departmental measures and overall organizational measures.
The case of joint entity is even more muddled as there are two erstwhile organizations who are ... Views: 471
Jehangir Ratanji Dadabhoy Tata (JRD) (29July 1904-29 November 1993) was an avid aviator and business tycoon. He was the Chairmen of Tata and Sons. Under his chairmanship, the assets of the Tata Group grew from US$100 million to over US$ 5 billion. He started with 14 enterprises under his ... Views: 497
IT Company Mastek Limited, a BSE-NSE Listed Company, had demerged its insurance products and service business into a separate listed company. Mastek is an IT solutions player with global operations providing new technology and intellectual property led enterprise solutions to insurance, ... Views: 604
In a colossal deal, Microsoft Corp. has entered into a definite agreement to purchase LinkedIn Corporation for $196 per share in an all-cash transaction valued at $26.2 billion. Post transaction LinkedIn will retain its distinct brand, culture, and independence. Here are a few of the important ... Views: 622
Today the cement industry is going through a consolidation phase with large Indian cement players vying for smaller ones and foreign cement majors acquiring controlling stake in Indian majors. In a move to strengthen its position, Birla Corporation announced an acquisition of the entire cement ... Views: 888
The year 2015 created a record in terms of global mergers and acquisitions (M&As). The total value touched $5.03 trillion, a massive rise of 37% ($3.67 trillion) from 2014, according to data from Dealogic. In fact, the total value of deals in 2015 was more than double of 2009, the year ... Views: 876