lunes, 25 de octubre de 2010

Mergers and Acquisitions


First of all, we need a definition of these two trendy moves in the business world of today. A merger, according to what Business Link Government webpage from the UK says, is “A merger is when you integrate your business with another and share control of the combined businesses with the other owner(s)” (BSL, N/A). In easy words, it is when two companies become one in all meanings, for example Glaxo Wellcome and SmithKline Beecham.

And an acquisition is, as stated by the Business Link, is “An acquisition is when you buy another business and end up controlling it” (BSL, N/A). To put this in easier words is harder than to understand that definition. In some cases, acquisitions can be friendly or not, it depends if the company bought expresses its desire to be bought or not, which is not the majority of the cases.

My case study, for matters of the task, is one that I found very interesting. This article says that the rumors of the famous de-merger of Air India and Indian Airlines are fake and no more than just rumors. The ministry of civil aviation said that “The merger was a carefully thought-out process and a collective decision of all agencies of the government. We have no move afoot for the Air India-Indian Airlines demerger (…)”.
This is an interesting article I decided to share with everybody.
At last but not least, here’s a News Video from an Indian news program called 24x7. This video shows the main points within the merger when it was made.

You can find a good example of this subject in the following video:


Bibliography
Mergers and Acquisitions http://www.businesslink.gov.uk/bdotg/action/layer?topicId=1074407579
Air India and Indian Airlines merger case http://www.thaindian.com/newsportal/business/air-india-indian-airlines-merger-to-stay-lead_100310655.html
Video: http://www.youtube.com/watch?v=CIMFEPhetd4

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