Acquisitions and mergers are common in business. It is doing for business development, increasing its marketplace, sometimes to battle with competitors, and sometimes for branding. Like many reasons are there for merging and acquisition. Here we can see a list of few companies involved in acquisition and merging.
Tata Motors Acquires Jaguar and Land Rover
A Tata motor is one of the largest automotive manufacturers in the world. Tata motors acquire Jaguar and Land Rover from Tata Motors for $2.3 billion in 2008. Forming the brand manufactures several classes of vehicles such as the Range Rover, Defender, and Discovery. Tata motors worldwide operation in the commercial vehicle segment and the passenger vehicle segment.
Vodafone Idea Merger
Vodafone and Idea were merged and called Vi. They are Indian telecom operators in India. In November 2020, it has a subscriber base of 289.9 million. Reuters reports the Vodafone Idea merger to be valued at $23 billion. Now Vodafone holds a 45.1% stake and the Aditya Birla group holds a 26% stake, and Idea holds the remaining. Vodafone Idea revealed its new brand identity, ‘Vi,’ in September, which shows the two companies’ integration.
Snapdeal Acquires Freecharge
In early 2015 Snapdeal acquired Freecharge, one of the biggest acquisitions in the history of India’s internet industry. By this acquisition, Snapdeal, with 40 million users, acquired additional 20 million users of Freecharge. Freeharge investors are Sequoia Capital, ru-Net, Sofina Capital, Valiant Capital, and Tyborne. Snapdeal becomes the largest mobile commerce company in India. The acquisition was closed for $400mn. In 2017 the Snapdeal sold the Freecharge to Axis Bank for $60mn.
Flipkart Acquires Walmart
Flipkart is an e-commerce company in India, and it has a share of 39.6% market in India’s e-commerce industry. It has previously bought Jabong. Flipkart acquired 100% wholesale business of Walmart in July 2020 to expand its wholesale market place. By this acquisition, it expanded its operation in the food and grocery to strengthen its supply chain. Flipkart said this would enable the transformation of the Kirana retail ecosystem. Walmart invested $16 billion in Flipkart.
Ola Acquires TaxiForSure
Ola Cabs is a ridesharing company in India offering services that include a vehicle for hire and food delivery. It was founded in December 2010, and its value is $6.5 billion as of October 2019. Ola acquired TaxiForSure in the year 2015 for approximately $200 million to battle with competitor Uber in India. After the acquisition, both continued their operations separately, and also TaxiForSure’s investors have continued their investment with Ola. After the 18 months of acquisition, Ola Shuts down TaxiForSure had cost for the shedding of 700 jobs.
Flipkart Acquires Myntra
In 2014 Flipkart acquired Myntra for the value of 2000 crore. Myntra continues its operation independently under Flipkart ownership. Myntra was founded in 2007 as a fashion e-commerce company headquartered in Bengaluru. After this acquisition, Myntra share increased to 50 percent in the market. After the acquisition, both the parties benefited mutually. Accel Partners and Tiger Global are investors of the parties.
It’s not all the acquisition will boost or cause business success sometimes; it may lead to failure or loss. We can see many cases like this. The Acquisition is happening over time and now.