Overview of Mergers and Acquisitions

Whereby in a merger, the two or more companies create a new entity and in an acquisition, the acquired company loses its economic and legal autonomy. The term "acquisition" refers to the acquisition of assets by one company from another company. In an acquisition, both companies may continue to exist. The acquiring company will remain in business and the acquired company (which we will sometimes call the Target Company) will be integrated into the acquiring company and thus, the acquird company ceases to exist after the merger. .
             The literature sources [e.g. Jansen 2000; Haspeslagh/Jemison 1991] most frequently identify three phases of a merger or an acquisition.
             M&A activity in India: The Indian landscape.
             Top M&A Sectors in 2010.
             Sectors.
             US$ mn.
             % Value.
             Telecom.
             14,616.
             29%.
             Oil and Gas.
             11,273.
             23%.
             Pharma,Healthcare & Biotech.
             6,244.
             13%.
             Metals & Ores.
             4,099.
             8%.
             Banking & Financial Services.
             3,640.
             7%.
             Mining.
             1,974.
             4%.
             Power & Energy.
             1,500.
             3%.
             Real Estate & Infrastructure Management.
             985.
             2%.
             Hospitality.
             958.
             2%.
             FMCG, Food & Beverage.
             947.
             2%.
             Source: Grand Thornton, Dealtracker 6th Annual Edition 2010.
             Domestic Deals: 373 .
             Value: US $ 18.3 Biliion.
             Domestic deals values in 2010 increased almost three-fold to reach US $ 18.3 Billion, up by 173% over 2009. The growth was driven by Oil & Gass, Telecom and Real Estate & Infrastructure Management sectors.
             Top Domestic M&A Sectors in 2010.
             Sectors.
             US$ mn.
             % Value.
             Oil and Gas .
             11,273.
             62%.
             Telecom.
             3,093.
             17%.
             Real Estate & Infrastructure Management .
             834.
             5%.
             Banking & Financial Services .
             711.
             4%.
             Metals & Ores.
             553.
             3%.
             FMCG, Food & Beverage .
             256.
             1%.
             Hospitality.
             224.
             1%.
             Pharma, Healthcare & Biotech.
             210.
             1%.
             Power & Energy.
             173.
             1%.
             Avaiation.
             157.
             1%.
             Source: Grand Thornton, Dealtracker 6th Annual Edition 2010.
             Outbound deals: 198.
             Value: US $ 22.5 Billion.
             The outbound deals accounted for 45% of the total M&A deal value in 2010 as against 12% in 2009. The deal values in 2010 were 16 times those of 2009. The year saw top investments in varied sectors such as Telecom, Banking and Metals.