What are merger & acquisition…?:
What are merger & acquisition…? Merger- A merger is defined as combination of two companies into one larger company. Or A merger happens when two firms, often of about the same size, agree to go forward as a single new company rather than remain separately owned and operated. Acquisition - When one company take overs another company and clearly establised itself as the new owner,the purchase is called an acquisition.
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Types of Mergers Horizontal merger Vertical merger Market -Extension merger Product-Extension merger Conglomeration Purchase merger Consolidation merger
Why Merger and acquisition happens.......?:
Why Merger and acquisition happens.......? Gain Market Share Economies of Scale Enter new Markets Acquire Techonology Strategic Objective Vertical integration
How to do valuation of Purchase…..:
How to do valuation of Purchase….. Comparative Ratios Price-Earnings Ratio (P/E Ratio) Enterprise-Value-to-Sales Ratio (EV/Sales) 2. Replacement Cost 3 . Discounted Cash Flow (DCF) 4. Synergy: The Premium for Potential Success
The steel industry:
The steel industry THE GLOBAL STEEL INDUSTRY
TOP STEEL PRODUCING COUNTRIES:
TOP STEEL PRODUCING COUNTRIES Rank Country 2010 2009 %CHANGE 1 China 626.7 573.6 9.3 2 Japan 109.6 87.5 25.2 3 United States 80.6 58.2 38.5 4 Russia 67.0 60.0 11.7 5 India 66.8 62.8 6.4 6 South Korea 58.5 48.6 20.3 7 Germany 43.8 32.7 34.1 8 Ukraine 33.6 29.9 12.4 9 Brazil 32.8 26.5 23.8 10 Turkey 29.0 25.3 14.6
Indian Steel Industry:
Indian Steel Industry India, which has emerged among the top five steel producing and consuming countries over the last few years, backed by strong growth in its economy . Steel production has registered a growth of 6.4% to reach a level of 67million metric tonnes in 2010. Steel consumption has increased by 8% to 56 million metric tonnes in 2010. Consumption growth has been exceeding production growth in past few years. . Construction & infrastructure, manufacturing and automobile sectors accounted for major consumption of steel respectively in 2010