Sunday, October 24, 2010

Mergers and Acquisitions

With the globalization that we are living nowadays, merging process and acquisitions are becoming very popular.

When big companies are interested in acquire new markets is a good strategy to look for companies that already have the market and negotiate with them.



Merger is defined as "the combining of two or more companies, gennerally by offering the stockholders of one company securities in the acquiring company in exchange of the surrender of their stock" (investopedia).



In other words is when two or more companies become one with a mutual agreement.

Acquisition is a "corporate action in wich a company buy most if not all of the target company´s ownership stakes on order to assume control of the target firm."



India has experienced an important growth of mergers and acquisitions in this decade, an example of a merger was made by France Telecom wich pays almost 2 billions dollars to get a stake in India's Aircel ( 25% of the stocks company), and Indian operator.






References:

Image source: www.aircel.com

www.bloomberg.com/news/india-pakistan

www.intomobile.com2009.06.26/france-telecom


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