26-12-2012, 05:28 PM
MERGERS AND ACQUISITIONS TATA MOTORS AND JAGUAR
MERGERS AND ACQUISITIONS.pptx (Size: 759.37 KB / Downloads: 48)
Acquisition
When one company takes over another and clearly established itself as the new owner, the purchase is called an acquisition.
Acquisition is generally considered negative in nature
SYNERGIES RELATED TO ACQUISITION
Staff reductions
Acquiring new technology
Improved market reach and industry visibility
Takeovers
A corporate action where an acquiring company makes a bid for an acquiree . If the target company is publicly traded, the acquiring company will make an offer for the outstanding shares.
WHY SHOULD FIRMS TAKEOVER?
To gain opportunities of market growth more quickly.
To seek to gain a more dominant position in a national or global market
To acquire the skills or strengths of another firm.
To acquire a speedy access to revenue
To diversify its product or service range to protect itself against downturns in its core markets
Jaguar: The ups and downs
1922 - Founded in in Blackpool as Swallow Sidecar company
1960 - Jaguar name first appeared in 1935
1975 - Nationalized in due to financial difficulties
1984 - Floated off as a separate co in the stock market
1990 - Taken over by Ford
Why acquire Jaguar
Long term strategic commitment to automotive sector
Opportunity to participate in two fast growing auto segments (premium and small cars) and to build a comprehensive product portfolio with a global footprint immediately
Increased business diversity across markets and product segments
Unique opportunity to move into premium segment with access to world class iconic brands.
Jaguar offers a range of “Performance/Luxury” vehicles to broaden the brand portfolio.
Sharing of best practices between Jaguar, Land Rover and Tata Motors in the future
TATA MOTORS – A SNAPSHOT
TATA GROUP – 150 YEAR OLD
Previously Tata Engineering and Locomotive Company, Telco
Tata Motors’s break-even point for capacity utilization is one of the best in the industry worldwide
listed on the New York Stock Exchange in 2004
Why acquire JLR?
Is TATA catching a falling knife…or
Long term strategic commitment to automotive sector.
Opportunity to participate in two fast growing auto segments.
Increased business diversity across markets and products.
Land rover provides a natural fit for TML’s suv segment.
Jaguar offers a range of “performance/luxury” vehicles to broaden the brand portfolio.
Benefits from component sourcing,design services and low cost engineering.