Mergers and Acquisitions-An overview

Acquisition
An acquisition, also known as a takeover, is the buying of one company (the target) by
another. An acquisition may be friendly or hostile. n the former case, the companies
cooperate in negotiations! in the latter case, the takeover target is unwilling to be bought
or the target"s board has no prior knowledge of the offer. Acquisition usually refers to a
purchase of a smaller firm by a larger one. #ometimes, however, a smaller firm will
acquire management control of a larger or longer established company and keep its name
for the combined entity. $his is known as a reverse takeover.
Another type of acquisition is reverse merger, deal that enables a private company to get
publicly listed %o. A reverse merger occurs when a private company that has strong
prospects and is eager to raise financing buys a publicly listed company, usually one with
no business and limited assets. Achieving acquisition success has proven to be very
difficult, while various studies have showed that &'( of acquisitions were unsuccessful.
$he acquisition process is very comple), with many dimensions influencing its outcome.
$his model provides a good overview of all dimensions of the acquisition process.
$he buyer buys the shares, and control of the target company being purchased.
*wnership control in turn conveys effective control over the assets of the
company, but since the company is acquired intact as a going business, this form
of transaction carries with it all of the liabilities accrued by that business over its
past and all of the risks that company faces in its commercial environment.
$he buyer buys the assets of the target company. $he cash the target receives from
the sell+off is paid back to its shareholders by dividend or through liquidation.
$his type of transaction leaves the target company as an empty shell, if the buyer
buys out the entire assets. $his can be particularly important where foreseeable
liabilities may include future, unquantified damage awards such as those that
could arise from litigation over defective products, employee benefits or
terminations, or environmental damage.
Merger
n business or economics a merger is a combination of two companies into one larger
company. #uch actions are commonly voluntary and involve stock swap or cash payment
to the target. A merger can resemble a takeover but result in a new company name (often
combining the names of the original companies) and in new branding! in some cases,
terming the combination a ,merger, rather than an acquisition is done for marketing
reasons.
Classifications of mergers
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Mergers and Acquisitions-An overview
Horizontal mergers take place where the two merging companies produce similar
product in the same industry.
Vertical mergers occur when two firms, each working at different stages in the
production of the same good, combine.
Congeneric merger/concentric mergers occur where two merging firms are in the
same general industry, but they have no mutual buyer.customer or supplier
relationship, such as a merger between a bank and a leasing company.
Conglomerate mergers take place when the two firms operate in different
industries.
/erger raises concerns in antitrust circles. 0egulatory bodies such as the 1uropean
%ommission, the 2nited #tates 3epartment of 4ustice and the 2.#. 5ederal $rade
%ommission, %ompetition %ommission of 6akistan may investigate anti+trust cases for
monopolies dangers, and have the power to block mergers.
Accretive mergers are those in which an acquiring company"s earnings per share (16#)
increase. An alternative way of calculating this is if a company with a high price to
earnings ratio (6.1) acquires one with a low 6.1.
Dilutive mergers are the opposite of above, whereby a company"s 16# decreases. $he
company will be one with a low 6.1 acquiring one with a high 6.1.
$he completion of a merger does not ensure the success of the resulting organi7ation!
indeed, many mergers (in some industries, the ma8ority) result in a net loss of value due
to problems. %orrecting problems caused by incompatibility9whether of technology,
equipment, or corporate culture9 diverts resources away from new investment, and these
problems may be e)acerbated by inadequate research or by concealment of losses or
liabilities by one of the partners. *verlapping subsidiaries or redundant staff may be
allowed to continue, creating inefficiency, and conversely the new management may cut
too many operations or personnel, losing e)pertise and disrupting employee culture.
$hese problems are similar to those encountered in takeovers. 5or the merger not to be
considered a failure, it must increase shareholder value faster than if the companies were
separate, or prevent the deterioration of shareholder value more than if the companies
were separate.
Distinction between Mergers and Acquisitions
Although they are often uttered in the same breath and used as though they were
synonymous, the terms merger and acquisition mean slightly different things.
:hen one company takes over another and clearly established itself as the new owner,
the purchase is called an acquisition. 5rom a legal point of view, the target company
ceases to e)ist, the buyer ,swallows, the business and the buyer"s stock continues to be
traded.
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Mergers and Acquisitions-An overview
n pure sense of the term, merger happens when two firms, often of about the same si7e,
agree to go forward as a single new company rather than remain separately owned and
operated. $his kind of action is more precisely referred to as a ,merger of equals,. <oth
companies" stocks are surrendered and new company stock is issued in its place. 5or
e)ample, both 3aimler+<en7 and %hrysler ceased to e)ist when the two firms merged,
and a new company, 3aimler%hrysler, was created.
n practice, however, mergers of equals don"t happen very often. 2sually, one company
will buy another and, as part of the deal"s terms, simply allow the acquired firm to
proclaim that the action is a merger of equals, even if it is technically an acquisition.
<eing bought out often carries negative connotations, therefore, by describing the deal
euphemistically as a merger, deal makers and top managers try to make the takeover
more palatable.
A purchase deal will also be called a merger when both managements agree that 8oining
together is in the best interest of both of their companies. <ut when the deal is unfriendly
+ that is, when the target company does not want to be purchased + it is always regarded
as an acquisition.
:hether a purchase is considered, a merger or an acquisition depends on whether the
purchase is friendly or hostile and how it is announced. n other words, the real difference
lies in how the purchase is communicated to and received by the target company"s board
of directors, employees and shareholders. t is quite normal though for /=A deal
communications to take place in a so called "confidentiality bubble" whereby information
flows are restricted due to confidentiality agreements (>arwood, ;''&).
Business valuation
$he five most common ways to valuate a business are
asset valuation,
historical earnings valuation,
future maintainable earnings valuation,
relative valuation (comparable company = comparable transactions),
discounted cash flow (3%5) valuation
6rofessionals who valuate businesses generally do not use 8ust one of these methods but a
combination of some of them, as well as possibly others that are not mentioned above, in
order to obtain a more accurate value. $hese values are determined for the most part by
looking at a company"s balance sheet and.or income statement.
Accurate business valuation is one of the most important aspects of /=A as valuations
like these will have a ma8or impact on the price that a business will be sold for. /ost
often this information is e)pressed in a ?etter of *pinion of @alue (?*@) when the
business is being valuated for interest"s sake. $here are other, more detailed ways of
e)pressing the value of a business. $hese reports generally get more detailed and
A
Mergers and Acquisitions-An overview
e)pensive as the si7e of a company increases, however, this is not always the case as
there are many complicated industries which require more attention to detail, regardless
of si7e.
Financing M&A
/ergers are generally differentiated from acquisitions partly by the way in which they are
financed and partly by the relative si7e of the companies. @arious methods of financing
an /=A deal e)istB
(1) Cash
6ayment by cash. #uch transactions are usually termed acquisitions rather than mergers
because the shareholders of the target company are removed from the picture and the
target comes under the (indirect) control of the bidder"s shareholders alone.
A cash deal would make more sense during a downward trend in the interest rates.
Another advantage of using cash for an acquisition is that there tends to lesser chances of
16# dilution for the acquiring company. %ash places constraints on the cash flow of the
company.
() Financing
5inancing capital may be borrowed from a bank, or raised by an issue of bonds ($erm
5inance %ertificates in 6akistan). Alternatively, acquirer"s stock may be offered as
consideration. Acquisitions financed through debt are known as leveraged buyouts if they
take the target private, and the debt will often be moved down onto the balance sheet of
the acquired company.
(!) "#brids
An acquisition can involve a combination of cash and debt or of cash and stock of the
purchasing entity.
$%ecialist M&A advisor# firms
$hough, at present ma8ority of /=A advice is provided by full+service investment banks,
recent years have seen a rise in the prominence of specialist /=A advisers, who only
provide /=A advice (and not financing). n 6akistan, this 8ob is also done by
commercial banks. $hese speciali7ed companies are sometimes referred to as $ransition
%ompanies, assisting businesses often referred to as ,companies in transition., $o
perform these services in the 2#, an advisor must be a licensed broker dealer, and sub8ect
to #1%6.
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Mergers and Acquisitions-An overview
&e# motives behind M&A
$he dominant rationale to e)plain /=A activity is that acquiring firms seek improved
financial performance and market capture in terms of sales, new product line or e)tension
in the e)isting product line. $he following motives are considered to improve financial
performanceB
#ynergyB $his refers to the fact that the combined company can often reduce its
fi)ed costs by removing duplicate departments or operations, lowering the costs
of the company relative to the same revenue stream, thus increasing profit
margins.
ncreased revenue or market shareB $his assumes that the buyer will be absorbing
a ma8or competitor and thus increase its market power (by capturing increased
market share) to set prices.
%ross+sellingB 5or e)ample, a bank buying a stock broker could then sell its
banking products to the stock broker"s customers, while the broker can sign up the
bank"s customers for brokerage accounts. *r, a manufacturer can acquire and sell
complementary products.
1conomy of scaleB 5or e)ample, managerial economies such as the increased
opportunity of managerial speciali7ation. Another e)ample are purchasing
economies due to increased order si7e and associated bulk+buying discounts.
$a)ationB A profitable company can buy a loss maker to use the target"s loss as
their advantage by reducing their ta) liability. n the 2nited #tates and many other
countries, rules are in place to limit the ability of profitable companies to ,shop,
for loss making companies, limiting the ta) motive of an acquiring company.
Deographical or other diversificationB $his is designed to smooth the earnings
results of a company, which over the long term smoothens the stock price of a
company, giving conservative investors more confidence in investing in the
company. >owever, this does not always deliver value to shareholders (see
below).
0esource transferB resources are unevenly distributed across firms (<arney, -EE-)
and the interaction of target and acquiring firm resources can create value through
either overcoming information asymmetry or by combining scarce resources.
F-G

@ertical integrationB @ertical integration occurs when an upstream and
downstream firm merge (or one acquires the other). $here are several reasons for
this to occur. *ne reason is to internalise an e)ternality problem. A common
e)ample is of such an e)ternality is double marginali7ation. 3ouble
marginali7ation occurs when both the upstream and downstream firms have
monopoly power, each firm reduces output from the competitive level to the
monopoly level, creating two deadweight losses. <y merging the vertically
integrated firm can collect one deadweight loss by setting the upstream firm"s
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Mergers and Acquisitions-An overview
output to the competitive level. $his increases profits and consumer surplus. A
merger that creates a vertically integrated firm can be profitable.
F;G

>owever, on average and across the most commonly studied variables, acquiring firms"
financial performance does not positively change as a function of their acquisition
activity. $herefore, additional motives for merger and acquisiiton that may not add
shareholder value includeB
3iversificationB :hile this may hedge a company against a downturn in an
individual industry it fails to deliver value, since it is possible for individual
shareholders to achieve the same hedge by diversifying their portfolios at a much
lower cost than those associated with a merger.
/anager"s hubrisB manager"s overconfidence about e)pected synergies from /=A
which results in overpayment for the target company.
1mpire+buildingB /anagers have larger companies to manage and hence more
power.
/anager"s compensationB n the past, certain e)ecutive management teams had
their payout based on the total amount of profit of the company, instead of the
profit per share, which would give the team a perverse incentive to buy companies
to increase the total profit while decreasing the profit per share (which hurts the
owners of the company, the shareholders)! although some empirical studies show
that compensation is linked to profitability rather than mere profits of the
company.
'ffects on management
A study published in the 4uly.August ;''H issue of the 4ournal of <usiness #trategy
suggests that mergers and acquisitions destroy leadership continuity in target companies
top management teams for at least a decade following a deal. $he study found that target
companies lose ;- percent of their e)ecutives each year for at least -' years following an
acquisition I more than double the turnover e)perienced in non+merged firms.
M&A mar(et%lace difficulties
n many countries, no mar(et%lace currently e)ists for the mergers and acquisitions of
privately owned #/1s (see the definition from $B)*$M'DA web sites). /arket
participants often wish to maintain a level of secrecy about their efforts to buy or
sell such companies. $heir concern for secrecy usually arises from the possible
negative reactions a company"s employees, bankers, suppliers, customers and
others might have if the effort or interest to seek a transaction were to become
known. $his need for secrecy has thus far thwarted the emergence of a public
forum or marketplace to serve as a clearinghouse for this large volume of business.
At present, the process by which a company is bought or sold can prove difficult, slow
and e)pensive. A transaction typically requires si) to nine months and involves many
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Mergers and Acquisitions-An overview
steps. ?ocating parties with whom to conduct a transaction forms one step in the overall
process and perhaps the most difficult one. Kualified and interested buyers of
multimillion dollar corporations are hard to find. 1ven more difficulties attend bringing a
number of potential buyers forward simultaneously during negotiations. 6otential
acquirers in an industry simply cannot effectively ,monitor, the economy at large for
acquisition opportunities even though some may fit well within their company"s
operations or plans.
An industry of professional ,middlemen, (known variously as intermediaries, business
brokers, and investment bankers) e)ists to facilitate /=A transactions. $hese
professionals do not provide their services cheaply and generally resort to previously+
established personal contacts, direct+calling campaigns, and placing advertisements in
various media. n servicing their clients they attempt to create a one+time market for a
one+time transaction. #tock purchase or merger transactions involve securities and require
that these ,middlemen, be licensed broker dealers #1%6 regulations in order to be
compensated as a ( of the deal. Denerally speaking, an unlicensed middleman may be
compensated on an asset purchase without being licensed. /any, but not all, transactions
use intermediaries on one or both sides. 3espite best intentions, intermediaries can
operate inefficiently because of the slow and limiting nature of having to rely heavily on
telephone communications. /any phone calls fail to contact with the intended party.
<usy e)ecutives tend to be impatient when dealing with sales calls concerning
opportunities in which they have no interest. $hese marketing problems typify any
private negotiated markets. 3ue to these problems and other problems like these, brokers
who deal with small to mid+si7ed companies often deal with much more strenuous
conditions than other business brokers. /id+si7ed business brokers have an average life+
span of only -;+-H months and usually never grow beyond - or ; employees.
$he market inefficiencies can prove detrimental for this important sector of the economy.
<eyond the intermediaries" high fees, the current process for mergers and acquisitions has
the effect of causing private companies to initially sell their shares at a significant
discount relative to what the same company might sell for were it already publicly traded.
An important and large sector of the entire economy is held back by the difficulty in
conducting corporate /=A (and also in raising equity or debt capital). 5urthermore, it is
likely that since privately held companies are so difficult to sell they are not sold as often
as they might or should be.
6revious attempts to streamline the /=A process through computers have failed to *ne
part of the /=A process which can be improved significantly using networked
computers is the improved access to ,data rooms, during the due diligence process
however only for larger transactions. 5or the purposes of small+medium si7ed business,
these datarooms serve no purpose and are generally not used. 0easons for frequent failure
of /=A was analy7ed by $homas #traub in ,0easons for frequent failure in mergers and
acquisitions + a comprehensive analysis,, 32@ Dabler 1dition, ;''L.
+he ,reat Merger Movement
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Mergers and Acquisitions-An overview
$he Dreat /erger /ovement was a predominantly 2.#. business phenomenon that
happened from -HE& to -E'&. 3uring this time, small firms with little market share
consolidated with similar firms to form large, powerful institutions that dominated their
markets. t is estimated that more than -,H'' of these firms disappeared into
consolidations, many of which acquired substantial shares of the markets in which they
operated. $he vehicle used were so+called trusts. $o truly understand how large this
movement was9in -E'' the value of firms acquired in mergers was ;'( of D36. n
-EE' the value was only A( and from -EEHI;''' is was around -'I--( of D36.
*rgani7ations that commanded the greatest share of the market in -E'& saw that
command disintegrate by -E;E as smaller competitors 8oined forces with each other.
>owever, there were companies that merged during this time such as 3u6ont, Mabisco,
2# #teel, and Deneral 1lectric that have been able to keep their dominance in their
respected sectors today due to growing technological advances of their products, patents,
and brand recognition by their customers. $hese companies that merged were
consistently mass producers of homogeneous goods that could e)ploit the efficiencies of
large volume production. %ompanies which had specific fine products, like fine writing
paper, earned their profits on high margin rather than volume and took no part in Dreat
/erger /ovement.
$hort-run factors
*ne of the ma8or short run factors that sparked in $he Dreat /erger /ovement was the
desire to keep prices high. $hat is, with many firms in a market, supply of the product
remains high. 3uring the panic of -HEA, the demand declined. :hen demand for the good
falls, as illustrated by the classic supply and demand model, prices are driven down. $o
avoid this decline in prices, firms found it profitable to collude and manipulate supply to
counter any changes in demand for the good. $his type of cooperation led to widespread
hori7ontal integration amongst firms of the era. 5ocusing on mass production allowed
firms to reduce unit costs to a much lower rate. $hese firms usually were capital+intensive
and had high fi)ed costs. <ecause new machines were mostly financed through bonds,
interest payments on bonds were high followed by the panic of -HEA, yet no firm was
willing to accept quantity reduction during this period.
.ong-run factors
n the long run, due to the desire to keep costs low, it was advantageous for firms to
merge and reduce their transportation costs thus producing and transporting from one
location rather than various sites of different companies as in the past. $his resulted in
shipment directly to market from this one location. n addition, technological changes
prior to the merger movement within companies increased the efficient si7e of plants with
capital intensive assembly lines allowing for economies of scale. $hus improved
technology and transportation were forerunners to the Dreat /erger /ovement. n part
due to competitors as mentioned above, and in part due to the government, however,
many of these initially successful mergers were eventually dismantled. $he 2.#.
government passed the #herman Act in -HE', setting rules against price fi)ing and
monopolies. #tarting in the -HE's with such cases as U.S. versus Addyston Pipe and Steel
H
Mergers and Acquisitions-An overview
Co., the courts attacked large companies for strategi7ing with others or within their own
companies to ma)imi7e profits. 6rice fi)ing with competitors created a greater incentive
for companies to unite and merge under one name so that they were not competitors
anymore and technically not price fi)ing.
Cross-border M&A
n a study conducted in ;''' by ?ehman <rothers, it was found that, on average, large
/=A deals cause the domestic currency of the target corporation to appreciate by -(
relative to the acquirer"s. 5or every N-+billion deal, the currency of the target corporation
increased in value by '.&(. /ore specifically, the report found that in the period
immediately after the deal is announced, there is generally a strong upward movement in
the target corporation"s domestic currency (relative to the acquirer"s currency). 5ifty days
after the announcement, the target currency is then, on average, -( stronger.
F&G
$he rise of globali7ation has e)ponentially increased the market for cross border /=A.
n -EEJ alone there were over ;''' cross border transactions worth a total of
appro)imately N;&J billion. $his rapid increase has taken many /=A firms by surprise
because the ma8ority of them never had to consider acquiring the capabilities or skills
required to effectively handle this kind of transaction. n the past, the market"s lack of
significance and a more strictly national mindset prevented the vast ma8ority of small and
mid+si7ed companies from considering cross border intermediation as an option which
left /=A firms ine)perienced in this field. $his same reason also prevented the
development of any e)tensive academic works on the sub8ect.
3ue to the complicated nature of cross border /=A, the vast ma8ority of cross border
actions have unsuccessful results. %ross border intermediation has many more levels of
comple)ity to it then regular intermediation seeing as corporate governance, the power of
the average employee, company regulations, political factors customer e)pectations, and
countries" culture are all crucial factors that could spoil the transaction.
FJGFLG
>owever, with
the weak dollar in the 2.#. and soft economies in a number of countries around the
world, we are seeing more cross+border bargain hunting as top companies seek to e)pand
their global footprint and become more agile at creating high+performing businesses and
cultures across national boundaries.
1ven mergers of companies with headquarters in the same country are very much of this
type (cross+border /ergers). After all,when <oeing acquires /c3onnell 3ouglas, the two
American companies must integrate operations in do7ens of countries around the world.
$his is 8ust as true for other supposedly ,single country, mergers, such as the N;L billion
dollar merger of #wiss drug makers #ando7 and %iba+Deigy (now Movartis).
E
Mergers and Acquisitions-An overview
Ma/or M&A in the 1001s
$op -' /=A deals worldwide by value (in mil. 2#3) from -EE' to -EEEB
2an( 3ear )urchaser )urchased
+ransaction value (in mil4
5$D)
- -EEE
@odafone Airtouch
6?%
FEG
/annesmann -HA,'''
; -EEE 6fi7er
F-'G
:arner+?ambert E','''
A -EEH 1))on
F--GF-;G
/obil LL,;''
C -EEE %iticorp $ravelers Droup LA,'''
& -EEE #<% %ommunications Ameritech %orporation JA,'''
J -EEE @odafone Droup
Air$ouch
%ommunications
J','''
L -EEH <ell Atlantic
F-AG
D$1 &A,AJ'
H -EEH <6
F-CG
Amoco &A,'''
E -EEE Kwest %ommunications 2# :1#$ CH,'''
-' -EEL :orldcom /% %ommunications C;,'''
-'
Mergers and Acquisitions-An overview
Ma/or M&A from 111 to %resent
$op E /=A deals worldwide by value (in mil. 2#3) since ;'''
2an( 3ear )urchaser )urchased
+ransaction value (in
mil4 5$D)
- ;'''
FusionB America *nline
nc. (A*?)
F-JGF-LG
$ime :arner -JC,LCL
; ;''' Dla)o :ellcome 6lc.
#mithOline <eecham
6lc.
L&,EJ-
A ;''C 0oyal 3utch 6etroleum %o.
#hell $ransport =
$rading %o
LC,&&E
C ;''J A$=$ nc.
F-HGF-EG
<ell#outh %orporation L;,JL-
& ;''- %omcast %orporation
A$=$ <roadband =
nternet #vcs
L;,'C-
J ;''C #anofi+#ynthelabo #A Aventis #A J',;CA
L ;'''
Spin-oB Mortel Metworks
%orporation
&E,ELC
H ;''; 6fi7er nc. 6harmacia %orporation &E,&-&
E ;''C 46 /organ %hase = %o <ank *ne %orp &H,LJ-
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Mergers and Acquisitions-An overview
$tatutes and 2egulations6
<anking %ompanies *rdinance, -EJ;
%ompanies *rdinance, -EHC
%ompetition %ommission *rdinance, ;''L
%ompetition (/erger %ontrol) 0egulations, ;''L
%ontract Act, -HL;
5oreign 1)change 0egulation Act, -ECL
5oreign 1)change /anual of #tate <ank of 6akistan
ncome $a) *rdinance, ;''-
?isted %ompanies (#ubstantial Acquisition of @oting #hares)
*rdinance, ;'';
0egistration Act, -HL;
#ale of Doods Act, -EA'
#tamp Act, -HEE
#tate <ank of 6akistan Act, -E&J
$ransfer of 6roperty Act, -HH;
-;
Mergers and Acquisitions-An overview
$ hares and Mergers
Acquisition *f #hares And /ergers %leared <y $he %%6 2nder #ection -- *f $he
%ompetition *rdinance.
<rief of $ransaction. 3ate of
M*%.
-. A%K2#$*M *5 #>A01# .
- Acquisition of shares of /.s. <? /odaraba /anagement 6rivate ?imited by 3r. >asan
#ohaib /urad
'C+-;+
;''L
; Acquisition of shares of /.s. :a7eer Ali ndustries ?imited by /.s. 3alda 5oods (6vt)
?imited.
-A+-;+
;''L
A Acquisition of shares of /.s. Dlobal #ecurities 6akistan ?imited by /.s. M< <ank ?imited A-+-;+
;''L
C Acquisition of shares of /.s. #audi 6ak <ank ?imited by a %onsortium led by /r. #haukat
$arin.
--+'-+
;''H
& Acquisition of shares of /.s. <osicor *il 6akistan ?imited by /.s <yco ndustries
ncorporated
'L+';+
;''H
J Acquisition of shares of /.s. 3>? 6akistan (6vt) ?imited by /.s. 3eutsche 6ost
nternational <@
-&+';+
;''H
L Acquisition of shares of /.s <osicor 6akistan ?imited by /.s. <yco ndustries ncorporated ;'+';+
;''H
H Acquisition of shares of /.s <osicor %hemicals 6akistan ?imited by /.s. <yco ndustries
ncorporated
;'+';+
;''H
E Acquisition of shares of /.s :orldcall 6akistan ?imited by /.s. *man $elecom. ;&+';+
;''H
-' Acquisition of shares of /.s /akro >abib 6akistan ?imited by /.s $hal ?imited. -'+'A+
;''H
-- Acquisition of shares of /.s. $enaga Denerasi ?imited by /.s. 3awood ?awrencepur
?imited.
;L+'A+
;''H
-; Acquisition of shares of #hira7i Droup %ompanies by /.s. #hira7i %apital (6vt) ?imited. ;H+'A+
;''H
-A
Mergers and Acquisitions-An overview
-A Acquisition of shares of /.s ndus /otor %ompany ?imited by /.s. $oyota %orporation
4apan .
;E+'C+
;''H
-C Acquisition of shares of /.s 152 Deneral nsurance %ompany by /.s. 152 ?ife Assurance
%ompany.
';+'&+
;''H
-& 6ossible Acquisition of shares of /.s. >eavy 1lectrical %omple) (6vt) ?imited by /.s.
#iemens ( 6akistan ) 1ngg. %ompany ?imited.
-&+'&+
;''H
-J Acquisition of shares of /.s. /%< <ank ?imited by /.s. /alayan <anking <erhad ;'+'&+
;''H
-L Acquisition of shares of Agro Deneral nsurance %ompany by /.s. $he 3irect nsurance
%ompany.
;-+'&+
;''H
-H Acquisition of shares of /.s. A<M Amro <ank ( 6akistan ) ?imited by a consortium led by
$he 0oyal <ank of #cotland Droup 6?%.
;;+'&+
;''H
-E. Acquisition of shares of /.s. 6akistan %ement %ompany ?imited by /.s. ?afarge # .A. ;A+'&+
;''H
;' Acquisition of shares of shares of /.s. Malco 6akistan (6vt) ?imited by /.s. Malco Asia
>olding 6te. ?td.
A'+'&+
;''H
;-
Acquisition of shares of shares of /.s. /illat ndustrial 6roducts ?imited by /.s. /illat
$ractors ?imited.
'&+'J+
;''H
;;
Acquisition of shares of /.s % 6akistan ?imited by /.s. Ak7o Mobel M.@. '&+'J+
;''H
;A
Acquisition of shares of /.s 6akistan 6$A ?imited by /.s. Ak7o Mobel M.@. '&+'J+
;''H
;C
6roposed acquisition of /.s. >a7ara 6hosphates 5ertili7er ?imited by /.s. 6ak+American
5ertili7er %ompany ?imited .
--+'J+
;''H
;&
Acquisition of shares of /.s. 5irst %apital nvestment ?imited by /.s. 5irst %apital
#ecurities %orporation ?imited.
-E+'J+
;''H
;J Acquisition of shares of /.s. #haheen nsurance %ompany ?imited by /.s. 5irst %apital
#ecurities %orporation ?imited.
-E+'J+
;''H
;L Acquisition of shares of /.s. /edia $imes ?imited by /.s. 5irst %apital #ecurities
%orporation ?imited.
-E+'J+
;''H
;H Acquisition of shares of /.s. 6ace <arka 6roperties ?imited by /.s. 5irst %apital #ecurities
%orporation ?imited.
-E+'J+
;''H
;E Acquisition of shares of /.s. 2nilever 6akistan ?imited by /.s. 2nilever *verseas >olding
?imited, 2O .
;&+'J+
;''H
A' Acquisition of shares of /.s. #hakargan8 5ood 6roducts ?imited by /.s. OA#< %apital
?imited.
;&+'J+
;''H
A- Acquisition of 0epresentative *ffices of American 1)press <ank ?imited in 6akistan by /.s.
#tandard %hartered <ank ?imited.
;&+'J+
;''H
A; Acquisition of shares of /.s. %oca+%ola <everages 6akistan ?imited by /.s. %oca+%ola
cecek Anonim #irketi
'A+'L+
;''H
-C
Mergers and Acquisitions-An overview
AA Acquisition of shares of /.s. #weetwater 3airies 6akistan (6vt) ?td 'C+'L+
;''H
AC Acquisition of L&( shares of /.s. ?araib 1nergy ?imited by /.s. >ub 6ower %ompany
?imited
'A+'L+
;''H
A& Acquisition of shares of /.s. 3>A %ogen ?imited by /.s. A1 Asia ?imited -L+'L+
;''H
AJ Acquisition of shares of /.s. %apital Asset ?easing %orporation by *ptimus ?imited. '-+'H+
;''H
AL Acquisition of /.s. 0afhan /ai7e 6roducts %ompany ?imited by /.s. <unge ?imited. '-+'H+
;''H
AH
6roposed acquisition of E' to -'' percent shares of /.s. >eavy 1lectrical %omple) (6vt)
?imited by /.s. l8in 1lectric %ompany ?imited.
--+'H+
;''H
AE
Acquisition of J;.&'( shares of /.s. Al+Asif #ugar /ills ?imited by /.s. >aq <ahu #ugar
/ills (6vt) ?imited.
;-+'H+
;''H
C' Acquisition of ;L.C'( shares of /.s. @ision Metwork $elevision ?imited by /.s. 1astgate
D1/s #6@A
;-+'H+
;''H
C- 6roposed acquisition of /.s. >a7ara 6hosphate 5ertili7ers ?imited by a %onsortium
comprising of /.s. Oissan %hemicals = 5ertili7ers (6vt) ?imited and /.s. %haudhry #teel
0e+0olling /ills (6vt) ?imited
'&+'E+
;''H
C; Acquisition of -'( shares of /.s.#aif 6ower ?imited by /.s. >abib <ank ?imited. -&+'E+
;''H
CA 6roposed acquisition of /.s. >a7ara 6hosphates 5ertili7er ?imited by /.s. :arble (6vt)
?imited
-H+'E+
;''H
CC Acquisition of shares of /ee7an <ank ?imited by /.s Moor 5inancial nvestment %ompany. ;;+'E+
;''H
C& Acquisition of '&.JA( shares of /.s. /%< <ank ?imited by /.s. Adam8ee nsurance
%ompany ?imited.
;&+'E+
;''H
CJ Acquisition of shares of /.s. Oarachi 1lectric #upply %ompany by /.s. D%5 #6 ;- ?imited
(Abraa8).
;A+-'+
;''H
CL Acquisition of shares of /.s. <ankslami 6akistan ?imited by /.s. 3ubai <anking Droup
??%.
;H+-'+
;''H
CH Acquisition of ;E( shares of /.s. #weetwater 3airies 6akistan (6vt) ?imited by /.s.
2nicornn nvestment <ank.
A-+-'+
;''H
CE Acquisition of &-( shares of $ameer /icrofinace <ank ?imited by $elenor 6akistan (6vt.)
?imited.
;L+--+
;''H
&' Acquisition of -''( shares of /obiserve 6akistan (6vt) ?imited by /obiserve >olding '&+-;+
;''H
&- Acquisition of -H.-C( shares of 2ch 6ower ?imited by %reative 1nergy 0esources
%orporation .
'&+-;+
;''H
&;
Acquisition of A.E'( shares of /ee7an <ank ?imited by Moor 5inancial nvestment
%ompany .
'&+-;+
;''H
&A
Acquisition of -.'' million Mon @oting *rdinary #hares of $etra 6ak 6akistan ?imited by
6ackages ?imited .
;J+-;+
;''H
&C Acquisition of total paid up shares and associated assets of <ristol+/yers 6akistan (6vt)
?imited by #.0. *ne nternational <.@, Metherlands .
A-+-;+
;''H
-&
Mergers and Acquisitions-An overview
&& Acquisition of 'E.;&( shares of 3awood slamic <ank ?imited by 2nicorn nvestment
<ank, <.#.%, <ahrain .
;E+'-+
;''E
&J Acquisition of ;'( shares of #andal <ar 0olling /ills (6vt) ?imited by 3r. $ariq /ahmood
%haudhry
;'+';+
;''E
&L Acquisition of H.HA( shares of /.s. Allied <ank ?imited by /.s. brahim 5ibres ?imited 'A+'A+
;''E

;. M'2,'2$.
-
/erger of /.s. Anwar %otton /ills (6vt) ?imited and /.s. Aslam ndustries ?imited with
and into /.s. A%0* $e)tile /ills ?imited
'J+-;+
;''L
; /erger of /.s. 6akistan %redit and nvestment %orporation with and into /.s. M< <ank
?imited.
A-+-;+
;''L
A /erger of /.s. 6%% %ommercial <ank ?imited with and into /.s. M< <ank ?imited.. A-+-;+
;''L
C /erger of /.s. $otal /edia ?imited with and into /.s. /edia $imes ?imited. -&+';+
;''H
& /erger of /.s. %rescent <ahuman 1nergy and /.s. %rescent <ahuman $e)tile ?imited with
and into /.s. %rescent <ahuman ?imited.
-J+'C+
;''H
J
/erger of /.s. Pousaf #ugar /ills ?imited with /.s. Abdullah #ugar /ills ?imited
;C+'J+
;''H
L
/erger of /.s. >aseeb :aqas 1ngineering ?imited with Abdullah #ugar /ills ?imited.
;C+'J+
;''H
H
Amalgamation of Al Abbas ndustries ?imited with and into Al Abbas #ugar /ills ?td
;L+'J+
;''H
E
/erger of /.s. Al+Abbas >olding (6vt) ?imited and /.s. Dhani >olding (6vt) ?imited with
and into /.s. 4avedan %ement ?imited
--+'H+
;''H
-'
/erger of /.s. nternational /ulti ?easing %orporation with and into /.s. Al Qamin
?easinng /odaraba
--+'H+
;''H
--
/erger of /.s. 6irkoh Das %ompany (6rivate) ?imited with and into /.s. *il = Das
3evelopment %ompany ?imited
'C+'E+
;''H
-;
/ergers of /.s. Automotive <attery %ompany ?imited with and into /.s. 1)ide 6akistan
?imited.
'E+'E+
;''H
-A
/erger of /.s. 6fi7er ?aboratories ?imited and 6arke 3avis = %ompany ?imited.
-;+'E+
;''H
-J
Mergers and Acquisitions-An overview
-C
/erger of /.s. /erck #harpe and 3ohme of 6akistan ?imited with and into /.s. *<#
6akistan (6vt) ?imited.
;&+'E+
;''H
-& /erger of OA#< <ank ?imited, OA#< %apital and Atlas <ank ?imited 'L+--+
;''H
-J
/erger of /.s. Mishat Apparel ?imited with and into /.s Mishat /ills ?imited.
--+--+
;''H
-L /erger of /.s. 4ubilee 1nergy ?imited with and into /.s. 4ubilee #pinning and :eaving
/ills ?imited.
-H+--+
;''H
-H /erger of Metwork ?easing %orporation ?imited with and into OA#< <ank ?imited . '&+-;+
;''H
-E
Amalgamation of the >ong Oong and #hanghai <anking %orporation (all branches in
6akistan ) with and into >#<% <ank /iddle 1ast ?imited.
A'+'-+
;''E
7oint 8enture6
- 5ormation of a 4oint @enture %ompany /.#. Adam8ee ?ife Assurance %ompany ?td
by /.s. Adam8ee nsurance %ompany ?td, >ollard ?ife Assurance %ompany ?td =
@/ ntersurer <.@.
For reference6
httpB..www.mca.gov.pk.3ownloads.ccp+0ules./erger+%ontrol+
0egulation.pdf
-L
Mergers and Acquisitions-An overview
$tandard Chartered acquires 5nion Ban(
#tandard %hartered 6?% announced on $uesday that its subsidiary company, #tandard
%hartered <ank (6akistan) ?imited, has completed the acquisition of E&.AL per cent
interest in 2nion <ank ?td.
$he bank said it had paid an amount of NCHL million for the purchase of 2nion <ank.
#tandard %hartered <ank submitted a scheme of amalgamation to the #tate <ank of
6akistan. *n approval, 2nion <ank and #tandard %hartered <ank would amalgamate into
#tandard %hartered <ank (6akistan) ?td, said a press release issued by the bank.
$he release said 2nion <ank provided #tandard %hartered with a significant opportunity
for growth in both consumer and wholesale banking through product innovation, wider
distribution reach and leveraging #tandard %hartereds international network.
R*ur overriding priority will be to ensure that we maintain the highest standards of
service for our customers. 5or customers of both banks, it will be business as usual until
further notice,R said the release.
<adar Oa7mi, chief e)ecutive officer, #tandard %hartered 6akistan, said in a statementB S
am delighted with the completion of the acquisition of 2nion <ank ?imited. $he merger
with 2nion <ank demonstrates #tandard %hartereds commitment to 6akistan and
presents tremendous opportunities. $his acquisition is transformational for #tandard
%hartered in 6akistan. t will be beneficial for the customers in terms of our ability to
provide value+added sophisticated products and services that match our customers
needs.R
St will also provide a strong platform for personal and professional development and
growth to all staff across the bank,R he added.
-H