TATA CORUS
IOSR Journal of Business and Management (IOSR-JBM) e-ISSN: 2278-487X, p-ISSN: 2319-7668. Volume 11, Issue 1 (May. - Jun. 2013), PP 41-47 www.iosrjournals.org An Analysis of the Impact of Merger and Acquisition of Corus by
Tata Steel
Manoj Kumara N V 1, Dr. Satyanarayana2
1
(Doctoral Student, Department of Post Graduate Studies in Management Sciences,Maharaja Research foundation. University of Mysore, India)
2
(HOD and Professor, Department of Post Graduate Studies in Management Sciences,Maharaja Institute of
Technology. Mysore, India)
Abstract: Merger and Acquisition have became exclusive trend in steel industry globally since the beginning of the 21st century. Corporate integration in the corporate world is accomplishing significance and concentration especially with an exciting undertaking of intense globalization. This is the clear evidence from the importance and increasing growth of deal values and resulted with more corporate integration in recent times. These studies examine the key motive drivers and evaluate the impact of mergers and acquisition in steel industry on event study approach. This event study focused on Tata steel – Corus Acquisition during the year
2007. The study used a published financial statement which consists of secondary data. The financial statements are analysed and tested by using correlation co-efficient and t- test. The outcome of the analysis disclosed that there is a significant difference between pre – post merger and acquisition in capital base and level of returns.
There is a significant difference between pre – post merger and acquisition EPS. The finding of this study evolves those synergies, increased capitalization with the proof of changes in returns, profitability based on the research findings. It can be summarized that the corporate integration has increase the organizational performance also contributed to the growth of the steel industry.
Keywords – Mergers and Acquisitions,
Tata Steel
Manoj Kumara N V 1, Dr. Satyanarayana2
1
(Doctoral Student, Department of Post Graduate Studies in Management Sciences,Maharaja Research foundation. University of Mysore, India)
2
(HOD and Professor, Department of Post Graduate Studies in Management Sciences,Maharaja Institute of
Technology. Mysore, India)
Abstract: Merger and Acquisition have became exclusive trend in steel industry globally since the beginning of the 21st century. Corporate integration in the corporate world is accomplishing significance and concentration especially with an exciting undertaking of intense globalization. This is the clear evidence from the importance and increasing growth of deal values and resulted with more corporate integration in recent times. These studies examine the key motive drivers and evaluate the impact of mergers and acquisition in steel industry on event study approach. This event study focused on Tata steel – Corus Acquisition during the year
2007. The study used a published financial statement which consists of secondary data. The financial statements are analysed and tested by using correlation co-efficient and t- test. The outcome of the analysis disclosed that there is a significant difference between pre – post merger and acquisition in capital base and level of returns.
There is a significant difference between pre – post merger and acquisition EPS. The finding of this study evolves those synergies, increased capitalization with the proof of changes in returns, profitability based on the research findings. It can be summarized that the corporate integration has increase the organizational performance also contributed to the growth of the steel industry.
Keywords – Mergers and Acquisitions,
References: Acharya,Ram,C, the impacts of merger and acquisition on firms profitability, a case study of Canadian firms. Journal of Finance ,, volume 4, 2000, 1605-1621. Hitt.M, Harrison.J and Best.A, attributes of successful and unsuccessful acquisition of US firms, British Journal of Management,9(2, 1998, 91-114). [11] Ross, Westerfield and Jaffee, Corporate finance (6th edition, Boston: Mcgraw-Hill/Ervin, 2002). Harward Business Reviews , mergers and acquisitions(Boston, HB SchoolPress,MA02163) www.iosrjournals.org