Impact of Merger and Acquisition in Mobile Industry: A Case Study on "Vodafone and Hutch”

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K. Pranathi
Amathun Noor
B. Indira Priyadarshini

Abstract

Mergers and Acquisitions in Global Scenario is the way for the companies to undergo the process of amalgamation, takeover, reconstruction and re­organization. Mergers and Acquisitions are the leading corporate strategies followed by organizations looking for improved value creation post­ liberalization era, the demand for intense growth and development in business has paved and profitability. Merger is defined as a combination of two companies in to a single company where one survives and the other loses their corporate existence. The survivor acquires all the assets and liabilities of the merged companies. Acquisition is the process of acquiring a company to build on strengths or weaknesses of the acquiring company. A merger is similar to an acquisition but refers more strictly to combining all of the interests of both companies into a stronger single company. The research paper makes an attempt to examine the opportunities of Vodafone mobile industry, and also emphasizes on comparative study of financial performance pre and post merger. In achieving these objectives the research information is extracted through literature review.

The acquisition of Hutchison Essar of India by UK based Vodafone was carried out which has marked the penetration of Vodafone into the Indian telecom market and provided the opportunity to Vodafone to tap the huge potential of expansion in India. The simplicity and comprehensive nature of the Hutch to Vodafone transition campaign was a perfect example of the successful entry of a new brand into a market.

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