Mergers & Acquisitions (Mergers & Acquisitions) MG 761 Mergers & Acquisitions Dr. Gracer Yung Midterm Presentation TATA GROUP (Mergers & Acquisitions)

Introduction TATA Group, an Indian multinational conglomerate company – Founded by Jamsetji Tata in 1868 and head quartered in Mumbai, India. TATA Group comprises over 100 operating companies, with operation in more than 100 countries across six continents. The revenue for 2013-14 period of TATA companies, $ 103.27 billion. 67% of this coming from business outside India. Product categories are airline, automotive, steel, IT, electricity generation, chemicals, beverages, telecom, hospitality, retail, consumer goods, engineering, construction and financial services TATA is 5.3% of Overall Indian GDP

Mergers & Acquisition Transactions Period Tata Company Acquired Company Country Amount Stock May-14 TATA Global Beverages Earth Rules Australia - 100% Jul-13 TATA Consultancy Services Alti Sa France $83.95 million Apr-11 TATA Chemicals Olam International Republic of Gabon $290 million 25.10% Aug-11 EPM Mining Ventures Canada 30.60% Jan-10 TATA Communications BT Groups UK Apr-10 TRF Hewitts Robins International Dec-10 British Salt $1.46 billion Jan-09 Neotel South Africa 30% Mar-09 Grand Russia 33.20% Oct-09 TATA Motors Hispano Carrocera SA Spain Jan-08 General Chemicals Industrial Products US $1.04 billion Mar-08 Jaguar and Land Rover $2.36 billion Jun-08 China Enterprise Communications Ltd China 50% Sep-08 TATA Power Geodynamics $44.1 million 10% Dec-08 Citigroup Global Services $512 million Jan-07 TATA Steel Corus $12.2 billion Nov-04 Tyco Global Networks $130 million

Mergers & Acquisitions TATA Group is a conglomerate company In 20th October 2006 the board of directors of Anglo-Dutch steel maker Corus accepted a $7.6 billion takeover bid from TATA Steel. Finally on 30th January 2007 TATA steel purchased a 100% stake in the Corus Group ($12.04 billion). TATA became worlds fifth largest steel group. In June 2008, India-based Tata Motors Ltd. announced that it had completed the acquisition of the two iconic British brands - Jaguar and Land Rover (JLR) from the US- based Ford Motors for US$ 2.3 billion.

Future Transactions TATA Communication and Telenor Group, Norway to merge wireless telephony operations in India. TATA Communication revenue is $3.2 billion Telenor revenue is $16.51 billion Both the companies are waiting for the Indian government to come out with its merger and acquisition policy after the ongoing telecom spectrum auction.

Conclusion TATA Group, had an enormous improvement in automotive, steel, chemical industry after the mergers and acquisition. IT business- BPO segment is facing a massive business threat from Philippines. BPO projects are moving to Philippines because of improved education of locals, technology environment and low labor cost. TATA’s M&A has to concentrate to get back the BPO business by concentrate in Philippines region.

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