Presentation On :

Merger and Acquisition

Prepared By:

IMCOST 2012-13

Merger and Acquisition's

Merger
Merger happens when two firms, often of about the same size, agree to go forward as a single new company rather than remain separately owned and operated

Acquisitions
When one company takes over another and clearly established itself as the new owner, the purchase is called an acquisition

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Volkswagen Group
Founded Founder 28 May 1937 Ferdinand Porsche

Headquarters Wolfsburg, (Germany) Industry Automotive

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 It has maintained the largest market share in Europe for over two decades.

The company's production grew rapidly in the 1950s and 1960s and in 1965.

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 The company has operations in approximately 150 countries

manufacture the car which would become known as the Beetle

The company's production grew rapidly in the 1950s and 1960s and in 1965.

Adopted corporate restructuring strategies.

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Audi
Founded Founder Headquarters 16 July 1909 August Horch Ingolstadt, (Germany) Automotive

Industry

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 The company name is based on the surname of the founder.

Audi became the first German car manufacturer to present a production car.

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 Audi oversees worldwide operations from its headquarters in Germany. Audi-branded vehicles are produced in seven production facilities worldwide.

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Financial Data
Production output 1,343,195 units (2011)

Revenue
Profit Total assets

44.096 billion (2011)

5.3 billion (2011) 16.832 billion (2011)

Total equity

3.451 billion (2011)

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Ducati
Founded Founder 1926 Ducati Family

Headquarters Bologna, Italy Industry Automotive

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 Societa Radio Brevetti Ducati is established. The Ducati factory was destroyed in the war. After the bombing. Later on Ducati focused on Motor Engines.

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 In 1946 the Borgo Panigale factory started to manufacture the Cucciolo, the first motorcycle produced under the Ducati brand. Now, Ducati is one of the most Respected and desired Bike Manufacture in the world.
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Financial Data
Revenue 479 million (2011)

There is not much current financial data available for the companys current financial condition because of the on-going dealing process.

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Actual Deal
In April 2012, Volkswagen Group's Audi subsidiary announced its intention to buy Ducati for 860 million (US$1.2 billion).

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Reason For This Merger

Ducati
To get rid of liabilities costing around 200 million.

Audi
They bought Ducati because they can.

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Synergies for Ducati

To associate with a Brand like Audi & Volkswagen group. Getting rid of the Liabilities. To enhance its marketing strategies, through out the world
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Synergies for Audi

Ducati doesn't enhance Audi's business model in any way, it's just a trophy in the wall cabinet. To enhance its motorcycle heritage. Another talking point with its longstanding rival.
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Conclusion
I would like to conclude the presentation saying that it was not the best of the moves for Audi & Volkswagen to buy Ducati. They could have concentrated more on Porsche and MAN.

IMCOST 2012-13

IMCOST 2012-13