After the merger has been done it is very important for both
the companies to make a strategy for the first 100 days and then look forward
to work upon the same. The synergy should include: operations synergy,
financial synergy, marketing synergy and manufacturing synergy
This is a positive indicator for strong future growth.
There will be a lot of synergies in the future relating in terms of sharing of
best practices across the companies. Thus
we can clearly see that the deal between TATA Steel and Corus was indeed a very
good move. Apart from gaining access to the western markets in such a short time,
TATA was also successful in integrating the two companies perfectly.
penetration into the European countries
market power through horizontal acquisition
the expertise of Corus management
The article shows that a merger has an impact of the firm
may be in different aspect relation to performance, profitability, economies of
scale etc. This research analysis has proven that the merger improved the
position of Tata steel in different parameters.
The research findings
shows that there was a significant difference between pre – post merger
and acquisition in capital base and level of returns and also a significant difference between pre – post
merger and acquisition EPS. Another finding from the research was that the
increase in the capital base because of corporate integration of Tata and Corus.
This research looks to explore the motive factors and
evaluate the impact of the deal. Event
study approach is used to study the impact of the M& A of Tata steel and
Corus. The source of data collections used is secondary data. The data has been
collected from the published financial statements by the company’s in their
annual reports. The variables used in
the research were profitability, performance, turnover, capacity, economies of
scale and enhanced control. The tools and techniques used in
the research were correlation co-efficient and t- test. Correlation
co-efficient and t- test were used to test the three hypothesized statements in
the study. The T- test is used to determine the post and prior -performance of
the last few years, India had witnessed a substantial hike in the mergers and
acquisitions (“M&A”) activity. Many can expect the increase in the M
deals in India as both the foreign investors and local investors are seeing
India towards a great tremendous growth in the sector .This research is
entirely based on the merger and acquisition deal between the Tata steel and chorus
and getting an insight into the steel industry by making an analysis of the
deal with the help of event study approach.