Identify two companies that have recently merged with one another.

Identify two companies that have recently merged with one another. Discuss how the merger went from both a positive as well as a negative perspective.

Solutions

Expert Solution

TOP LEVEL MANAGERS AGREE FOR MOST MERGERS because they can increase their perks, salary, and influence.

It's better to be a chief executive officer of a big company making the same amount of profit rather than a small company.

Example:

The TATA Group has made a large scale acquisition over the past two decades prominent among these is the acquisition of Corus by Tata Steel, Jaguar Landrover by Tata motors.

The Acquisition was made at a very high valuation. Such high the valuation was justified on the grounds of potential synergy.

Post facto, such synergy has not been realized and the TATA Group stocks have underperformed broader markets.

Negative point:

Most mergers and acquisition are designed to become big rather than beautiful (synergy/profit/increased sales). Such bigness obviously benefits the C level position (CFO, CEO, COO etc.) but it hurts shareholders value.

Positive Point:

It has increased the brand value of Tata Groups, and After Tata motors merger with Jaguar landrover, its ADR was listed in the New York stock exchange.

jeff jeffy answered 2 years ago

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