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Gupta, Nikunj (2022) Cross Border Merger & Acquisition a wealth creating proposition: An exploratory case study of Tata Motors and Jaguar Land Rover. Masters thesis, Dublin, National College of Ireland.
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Abstract
Through the 1990s and up to 2007, the world witnessed a massive wave of cross borders mergers and acquisitions. The vast majority of these such M&A transactions are horizontal, involving the acquisition of another company in the same industry. Such acquisitions imply a desire to increase revenues by broadening the scope of the market and/or increasing market share, as well as adding new products to the portfolio. They also advocate for cost-cutting measures in various aspects of operations. Whether or not these benefits are realized is an empirical question that has sparked research in a variety of fields, including economics, finance, and accounting.
The aim of this dissertation was to investigate post-merger performance from an acquirer standpoint. This study took a case-based approach, consisting of an exploratory case study to identify the parameters of the research problem and to develop a set of hypotheses.
The exploratory case study was based on Tata Motors, an Indian company which acquired Jaguar and Land Rover from Ford Motors. This case investigation based on data collected through a wide spectrum of secondary sources, showed that the acquisition had a significantly positive impact on Tata Motors profitability performance, with revenue growing significantly in the post-acquisition years. However, these sales increases came at a high cost; the company invested a huge amount in new product development and marketing communications, with the result that profit performance was negatively affected in the initial couple of years post-merger. However, profit margins increased, suggesting that the reduction post-merger may have been a temporary effect.
| Item Type: | Thesis (Masters) |
|---|---|
| Uncontrolled Keywords: | Merger & acquisition; cross border merger and acquisition; profitability; pre-and post-merger; correlation; case-study; financial performance |
| Subjects: | H Social Sciences > HD Industries. Land use. Labor > Large Industry. Corporations. > Consolidation and Merger of Corporations H Social Sciences > HD Industries. Land use. Labor > Specific Industries > Motor Industry |
| Divisions: | School of Business > Master of Science in Finance |
| Depositing User: | Clara Chan |
| Date Deposited: | 25 Oct 2022 15:33 |
| Last Modified: | 25 Oct 2022 15:33 |
| URI: | https://norma.ncirl.ie/id/eprint/5819 |
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