PRE AND POST CROSS-BORDER MERGER ANALYSIS WITH REFERENCE TO TATA-CORUS

Dr Keyur Nayak
Director, Laxmi Institute of Management
Shyamsunder Singh

Assistant Professor, Laxmi Institute of Management

abstract

Mergers have become unavailable in the steel industry in the entire world. The need for such an action has arisen due to the accumulation of excess capacity in the steel industry. Due to the presence of enormous small local steel segments mergers have become need of the hour. Business strategy often goes beyond the economic models, cost-benefit analysis, with a passion to grow, diversify and take leadership in the globalized economy by changing dreams into the reality. Merger is an area of prospective good as well as prospective harm in corporate strategy, s, it is necessary that an analysis should be made to compare the financial performance of the pre and post merger sessions of the companies. The study is mainly based on the secondary data. Ratio analysis, mean, standard deviation, ‘t’ test and co-relation have been used to evaluate the financial performance of the subject companies. This research paper tries to explore the merger as a strategic tool available in the hands of the management of the company to gain competitive advantage by exploiting synergies.

Keywords: Cross Border, Merger, Tata Corus, Competitive Advantage

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