Why Are Mergers and Acquisitions Happening Today? Share Your Insights and Examples

Manju27
Hello again. Can someone please describe the reasons for the formation of mergers and acquisitions with reference to the present-day scenario where such changes have taken place? Please give me some examples if you can.

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manojmbaacs
Dear Friend,

One of the chief reasons for the increase in mergers and acquisitions in the present-day world is synergy. There are other reasons such as increasing the scale of operation, increasing market share, entering a new market, and utilizing the tax benefits, etc.

If we look at a few present-day examples such as Kingfisher purchasing shares in Air Deccan - it is because the routes served by Air Deccan and Kingfisher are complementary to each other, so they can organize connection flights, and also Air Deccan will get the license to operate international flights shortly, whereas Kingfisher has to wait a couple of years for that. So, Kingfisher can utilize its facilities to operate the international flights by Air Deccan.

The acquisition of Corus Steel by Tata Steel is to increase its international presence and its share in the international market.

The acquisition of Gujarat Ambuja Cements by Holcim was to enter our country.

I hope some of your doubts are cleared.

Thank you

Regards,

Manoj Pillai
sjaishri
Can anybody tell me about the HR strategies separately in the case of mergers and acquisitions.

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