Mergers and Acquisitions have become a common practice in the corporate world. As an MBA aspirant it is important to keep a check on the enormous deals which are going around the corporate world. It would not only affect your career growth but will also highlight the areas in which you should venture to gain heights in your Career.
For Firms, these are beneficial as they promote growth and diversification in new markets. This growth is earned by acquiring a share of an existing player and venturing into a market which is new for the buyer.
Mergers and Acquisitions are also beneficial for the final consumer as they lead to elimination of competition and thereby enable ‘economies of scale’ (in other words attaining cost efficiency) for the customer.
Given below is the list of Top 10 Mergers and Acquisitions of 2015-16 which took place in various industries. Read about them and find out the reasons behind these acquisitions and mergers.
Top 10 Mergers and Acquisitions of 2015-16
Deal Amount: $70 million
Date: July 26, 2016
About the Deal: Flipkart Ltd has acquired Jabong through its unit Myntra. Jabong offers more than 1,500 international high-street brands, sports labels, Indian ethnic and designer labels and over 150,000 styles from more than 1,000 sellers. Ananth Narayanan is the current CEO of Myntra.
Deal Amount: $218 million
Date: July 14, 2016
About the Deal: Terrapin 3 Acquisition Corp (TRTL) acquired Yatra Online in a reverse merger deal. Yatra is one of the fastest growing consumer travel platforms with more than 4 million customers. It was launched in August 2006 to serve both leisure and business travelers in India.
Deal Amount: $US4.8 Billion
Date: July 26, 2016
About the Deal: Verizon will acquire Yahoo’s core internet business for about $4.83 billion in all cash deal. Yahoo will be merged with Verizon’s AOL unit under Marni Walden. The deal is expected to benefit Verizon’s digital advertising business.
Deal Amount: $26.2 Billion
Date: 13 June 2016
About the Deal: Microsoft Corporation and LinkedIn Corporation entered into a definitive agreement. Microsoft acquired LinkedIn for 196 dollar per share in an all-cash transaction valued at 26.2 billion dollar, inclusive of LinkedIn’s net cash.
Deal Amount: $200 million
Date: 2 March 2015
About the Deal: Online Taxi-service aggregator Olacabs acquired Bengaluru-based rival TaxiForSure in a cash and equity deal. This is the first major acquisition in the taxi-aggregator space in India. As per the acquisition, the leadership and all 1700 employees of TaxiForSure will continue to work with the company. Both the entities are going to operate as individual entities even after the acquisition.
Deal Amount: Undisclosed
Date: 12 July 2016
About the Deal: IDFC Bank signed a share purchase agreement to completely acquire South India-based lender Grama Vidiyal Micro Finance Ltd. It is a first-of-its-kind transaction, where a bank has taken over a microfinance institution and made it a subsidiary.
Deal Amount: 4500-5000 crore rupees
Date: 2 November 2015
About the Deal: Reliance Communications took over Russian conglomerate Sistema Shyam Teleservices’ (SSTL) venture that operates under the brand name of MTS for a cashless deal. As per the terms of merger, SSTL will acquire 10 percent equity in RCom. The Reliance Communications will assume the liability to pay instalments for SSTL’s spectrum, amounting to 392 crore rupees per annum, to the Department of Telecom (DoT) for the next 10 years
Deal Amount: $880 million
Date: 9 March 2016
About the Deal: Drug major Lupin on acquired privately held US-based GAVIS Pharmaceuticals LLC and Novel Laboratories (GAVIS). The deal was cash-free and debt-free and it was funded by a bridge loan, with 10 crore rupees from existing cash reserves deployed for it.
Deal Amount: $52 million
Industry: Food Industry
Date: 29 January 2015
About the Deal: Online restaurant search service provider Zomato Media Pvt Ltd has acquired Turkish company Mekanist. Turkish restaurants will be able to make use of Zomato's hyper-local advertising model to reach out to target customers that are searching for restaurants in and around their location.
Deal Amount: $12.2 billion
Date: 16 November 2015
About the Deal: Marriott International is set to become world’s largest hotel company with the acquisition of Starwood Hotels & Resorts Worldwide. The combined company will own/franchise more than 5500 hotels with 1.1 million rooms worldwide.
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