Acquisition Strategy - Copy

Acquisition Strategy - Copy - Acquisition Strategy...

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Acquisition Strategy Acquisition Strategy Clark “Tom” Browning MGT 450 Strategic Planning for Organizations Carol Hooper-Boyd 9 Jan 2012
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Acquisition Strategy Acquisition Strategy Essel Mining & Industries and Google are the two companies I chose to report on for this paper. The acquisition strategy of these two companies has become the talk of the economic industry. In this paper I will discuss the three basic advancements that these companies can expect from these ventures, the Resource strengths that they gain in the industry, the competitive capabilities and the bottom line expectations. “Essel Mining & Industries, a little-known, unlisted, closely-held company within the Birla fold, had extended $300 million (then about 1,350 crore) in equity, to fund the acquisition of the Canadian major. …This made the industry sit up and take notice. Soon it emerged that Essel has been driving most of Aditya Birla Group's transactions serving as a holding company for the group, and leading the business family's efforts to ramp up promoter holding in companies, that were as diversified as aluminum and telecom and financial services” (Ramsurva, 2011). Essel was a strong supporting factor in the days leading up to the acquisition of Novelis," said one of the members of the team involved in the Novelis acquisition. "The significance of having a company, almost 100% owned by the promoter, to bring in promoter equity, is enormous. It sends out the right signals that the group is serious,… Essel Mining is likely to continue that. It is expected to double its net profit to $1 billion by 2015” This is a unlisted company that is making the move toward more market share, to include more resource strengths. Essel Mining & Industries started operations in the 1950s when the group was much
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This note was uploaded on 01/18/2012 for the course BUSSINESS 640 taught by Professor Staff during the Spring '11 term at Ashford University.

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Acquisition Strategy - Copy - Acquisition Strategy...

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