There are lots of company all over the world and they also the giant making the mergers and acquisitions in accordance to the present business world to continue their business scale, to increase their business scale or don’t want to go downturn or having losses going to to sale the company. Below i am going to show some examples of Mergers and Acquisitions of world giant companies –
Successful Mergers Example:
Sirius Satellite Radio
Sirius Satellite Radio is a satellite radio (SDARS) service operating in North America, owned by Sirius XM Radio.
Sirius was officially launched on July 1, 2002 and currently provides 69 streams (channels) of music and 65 streams of sports, news and entertainment to listeners.
XM Satellite Radio is one of two satellite radio services in the United States and Canada, operated by Sirius XM Radio. It provides pay-for-service radio, analogous to cable television. The satellite service was officially launched on September 25, 2001.
It provides pay-for-service radio, analogous to cable television. Its service includes 73 different music channels, 39 news, sports, talk and entertainment channels, 21 regional traffic and weather channels and 23 play-by-play sports channels. XM channels are identified by Arbitron with the label “XM” (e.g. “XM32”).
Sirius/XM radio merger
On July 29, 2008, satellite radio officially had one provider when Sirius Satellite Radio joined forces with rival XM Satellite Radio. The merger was officially announced over a year before, in February 2007, but the actual merger was delayed due to one tiny problem – when satellite radio first began in 1997, the FCC granted only two licenses under one condition: that either of the holders would not acquire control of the other.
Oops. So Sirius and XM filed the proper paperwork with the FCC, allowed the FCC to investigate the merger, and waited patiently for the approval they needed. And although time will tell if the new Sirius XM company will succeed in the long-run, I consider this merger a success due to the number of big names recently added to their roster (Oprah, Howard Stern, Martha Stewart), as well having the foresight to combine forces in a down market.
Example for failed when go for Merger:
Pennsylvania Railroad
The Pennsylvania Railroad (reporting mark PRR) was an American Class I railroad, founded in 1846. Commonly referred to as the “Pennsy,” the PRR was headquartered in Philadelphia, Pennsylvania.
Dates of operation: 1846 – 1968
Headquarters: Philadelphia, Pennsylvania
Length: 10,512 miles (16,917 kilometres)
Locale: Illinois, Indiana, Michigan, Ohio, Kentucky, West Virginia, Pennsylvania, New York, New Jersey, Maryland, Michigan, Delaware, Washington, DC
New York Central Railroad
The New York Central Railroad (reporting mark NYC), also known as New York Central or The Central, was a railroad operating in the northeastern and midwestern United States. Headquartered in New York City, the New York Central was a large railroad, and it had several subsidiaries whose identity remained strong in local loyalties.
Dates of operation: 1831–1968
Headquarters: New York City, New York
Length: 11,172 miles (17,980 kilometres)
Locale: Illinois, Indiana, Kentucky, Massachusetts, Michigan, New York, New Jersey, Ohio, Ontario, Pennsylvania, Quebec, Vermont, Washington; DC, West Virginia
New York Central and Pennsylvania Railroad Merger
Merger failures didn’t exist in just the past few decades. In 1968, the New York Central and Pennsylvania railroads merged to become to the 6th largest corporation (at the time) in America, Penn Central. Yet two years later, they filed for bankruptcy protection .
The merger seemed right on paper, but these railroads were actually century-old rivals, desperately trying to avoid the trend towards cars and airplanes and away from trains. But these trends continuing anyways and the railroads found themselves unable to keep up with the rising costs of employees, government regulations, and facing major cost-cutting. Others also claim a lack of long-term planning, culture clashes between the two railroads, and poor management.
Sometimes, rivals just can’t get along, even in the face of mutual crisis.
Others Example of Merger and Acquisition:
Nokia
Nokia Oyj is a Finnish communications and information technology multinational corporation that is headquartered in Espoo, Finland. Wikipedia
Founded: 1865
CEO: Risto Siilasmaa
Headquarters: Espoo, Uusimaa, Finland
Founders: Fredrik Idestam, Leo Mechelin
Microsoft Corporation
Microsoft Corporation is an American multinational corporation headquartered in Redmond, Washington, that develops, manufactures, licenses, supports and sells computer software, consumer electronics and personal computers and services. Wikipedia
CEO: Satya Nadella
Stock price: MSFT (NASDAQ) $40.16 -0.17 (-0.42%)
Mar 21, 4:00 PM EDT – Disclaimer
Founded: April 4, 1975, Albuquerque, New Mexico, United States
Headquarters: Redmond, WA, United States of America
Founders: Bill Gates, Paul Allen
Nokia Acquisition by Microsoft:
Acquisition of mobile phone business by Microsoft on 2 September 2013, Microsoft announced that it would acquire Nokia’s mobile device business in a deal worth €3.79bn, along with another €1.65bn to license Nokia’s portfolio of patents for 10 years; a deal totaling at over €5.4bn. Steve Ballmer considered the purchase to be a “bold step into the future” for both companies, primarily as a result of its recent collaboration.
Following the sale, Nokia will focus on three core business units; its Here mapping service (which Microsoft will license for four years under the deal), its infrastructure division Nokia Solutions and Networks (NSN), and on developing and licensing its “advanced technologies”. Pending regulatory approval, the acquisition is expected to close in early 2014. As part of the deal, a number of Nokia executives will join Microsoft. Stephen Elop became the head of Microsoft’s devices team; Risto Siilasmaa replaced Elop as interim CEO.
While Microsoft licensed the Nokia brand under a 10-year agreement, Nokia agreed not to use its name on smartphones and will be subject to a non-compete clause preventing it from producing any mobile devices under the Nokia name through 31 December 2015. Microsoft acquired the rights to the Asha and Lumia brands as part of the deal.
In an interview with Helsingin Sanomat, former Nokia executive Anssi Vanjoki commented that the Microsoft deal was “inevitable” due to the “failed strategy” of Stephen Elop.
In October 2013, Nokia predicted a more profitable future for its NSN networks equipment business, which became the company’s main business.
Another Example of Merger and Acquisition:
Vodafone Group PLC
Vodafone Group plc /’vo?d?fo?n/ is a British multinational telecommunications company headquartered in London and with its registered office in Newbury, Berkshire. It is the world’s 2nd-largest mobile telecommunications company measured by both subscribers and 2013 revenues (in each case behind China Mobile), and had 453 million subscribers as of June 2013.
Vodafone owns and operates networks in 21 countries and has partner networks in over 40 additional countries. Its Vodafone Global Enterprise division provides telecommunications and IT services to corporate clients in over 65 countries.
Mannesmann AG was a German corporation
Mannesmann AG was a German corporation with headquarters in Düsseldorf. The company was founded in 1890 originally to produce seamless steel tubes, and in 1999 was acquired by Vodafone in the largest acquisition in recent history. It was traded on the Frankfurt Stock Exchange. (Ticker symbol is MMN.) The company had 130,860 employees worldwide and revenues (1999) of €23.27 billion.
Over time, Mannesmann companies in several industries, from telecommunications to printers and industrial equipment, to become a diversified conglomerate. Amongst its subsidiaries was Hartmann und Braun, which has since been sold off to Elsag-Bailey which was subsequently purchased by ABB.
Mannesmann Acquisition by Vodafone:
Mannesmann was acquired by Vodafone Group Plc. in 2000 in a tax-free stock exchange of 53.7 Vodafone shares for each share of Mannesmann. This was a controversial takeover as never before in Germany had a large company been acquired by a foreign owner. This was a hostile takeover but the merger was backed in a private deal between Mannesmann management and Vodafone. The acquisition was led by Vodafone’s Chief Executive, Chris Gent, and Goldman Sachs’ Scott Mead, who was then the chief advisor on the deal.
Under the terms of the deal, Mannesmann sought assurances from Vodafone that the Mannesmann brand and name would be kept under the new owners. This was agreed and the deal was announced. However, not long after this, Vodafone reneged on the deal and rebranded.
The total value of the Vodafone group on the stock market, after paying $183bn for Mannesmann in shares, will be $365bn (£228bn), making it by far the largest company on the London stock market and the fourth-largest in the world.
Its value reflects the bright prospects for the growth of mobile phone ownership around the world – and the huge boost provided by internet services soon being available via mobiles.
Source: Wikipedia
