amalgamtion and merger vodafone and idea.pdf - Chapter1 Introduction This research work is based on Merger and Amalgamation of companies of India

amalgamtion and merger vodafone and idea.pdf - Chapter1...

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1 Chapter1: Introduction This research work is based on Merger and Amalgamation of companies of India. Nowadays Merger & Amalgamation have become a common phenomenon & it can be considered as an important mechanism of corporate growth. As a natural consequence Indian market has geared to face competition from within the country & outside. It is a most popular means of cooperate restructuring in toda y’s world. Amalgamation means to unite combine and blend. It is an act & process in which two or more things fuse together to form a new potential thing. Amalgamation is also an emerging trend in today business in world. It results in formation of new, strong, stable & large company. During amalgamation two or more companies willing to come together to cooperate with each other and to diversify the business activities. There are number of reasons that amalgamation and merger occur. These issues generally related to business concerns such as competition, efficiency, resources, marketing, product & tax issue. The objective is to find out major issues associated with pre and post merging situations with special emphasis on human aspect. Merger and Amalgamation is a phenomenon which is easy to think and hard to implement. There are three phases of merger premerger synergies transition phase and the post-merger phase have its own advantages as well as difficulties, if handled with proper care can be withdrawn but a little mistake can spoil the whole transition. Both management and employees have to work hard to become a successful one. Post- merger transition phase is very difficult in the organisation weather large or small cultural clashes exist which may turn up a merger into failure. Merger and amalgamation is a business unit in which is essential for growth and survival of business. Companies acquiring more and more firms in order to expand their business and with lots of reasons which are discussed. If any company is not adapting this way they will not grow or will be acquired by other major big firm. When companies merge or make a plan for acquisition the only factor in their mind is growth and expansion is synergies. They can also occur because of personal issues retirement & family concerns. Reasons: One important reason that companies combine is to eliminate competition. The key determinants for success in global market are ability to achieve size, scale, integration and greater financial strength & flexibility. Acquiring a competitor is an excellent way to improve a firm’s pos ition in the marketplace. It reduces competition, and allows the acquiring firm to use the target’s resources and expertise. Unfortunately, combining for this purpose is illegal under the acts as a practice in restraint of trade. Consequently, whenever a merger is proposed, a major part of the resulting press release often deals with how this combination of firms is not anti-competitive, and is done to better serve the consumer. Even if the merger is not for the stated purpose of eliminating competition, U.S. regulatory agencies may conclude that a merger is likely to be anti- competitive.
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