merging and acquisition process

Merging and acquisition are 2 very common methods that companies use to expand the business and in some cases to grow in foreign markets.

Merging takes places when two companies decide to work together as one, and become one unique company, they share productivity knowledge and other factors to reach a common goal, when 2 companies merge as one they are looking for been bigger and stronger in the market and this leads to economical benefits for each partner.
In acquisition process what happens it’s not that tow companies decide to work together but in this case one of the companies decided to buy the other one to keep a full control of its process and give the other company a different management and organizational structure, in this case the company that acquires the other gains benefits such as market share, experience and process establishments and if the company its established in a foreign market gains all the process of adaptation and establishment in the new market.

There have been many acquisitions to Indian companies like for example the case of GHCL an Indian manufacturer and distributor of inorganic chemicals based in the state of Gujarat, acquired Dan River another example is the company Tata Steel bought the English-Dutch steel maker Corus it was a negotiation of about $12 billion.

An example of an Indian company that beholding this process it’s the airline company called Kingfisher Airlines, which is considered to be the best airline and its going through a process to merge with Iberia y British Airways. The decision and negotiation was fist taken by Iberia and British airways and consider with this merge they will have a clear potential market to be able to be part off. What they will do is work as one to offer better benefits to clients and be bigger and stronger in the market.

references:
http://www.thefreelibrary.com/DAN+RIVER+ACQUIRED+BY+INDIA-BASED+MANUFACTURER+GHCL-a0144312614

http://www.expansion.com/2010/09/06/empresas/transporte/1283758622.html?a=b474d6227b35d6e253b8e5f11e1381f3&t=1287959317