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Definition of Aquisition

An acquisition occurs when one company purchases most or all of another target company's ownership stakes to gain control of the target firm. Acquisitions are a strategic growth tactic where taking over an existing company's operations and niche is more beneficial than expanding independently. They are typically paid for through cash, acquiring company stock, or a combination of both in order to entice target shareholders to sell.

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22 views1 page

Definition of Aquisition

An acquisition occurs when one company purchases most or all of another target company's ownership stakes to gain control of the target firm. Acquisitions are a strategic growth tactic where taking over an existing company's operations and niche is more beneficial than expanding independently. They are typically paid for through cash, acquiring company stock, or a combination of both in order to entice target shareholders to sell.

Uploaded by

Akshit Bajaj
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Definition of 'Acquisition'

A corporate action in which a company buys most, if not all, of the target company's ownership stakes in order to assume control of the target firm. Acquisitions are often made as part of a company's growth strategy whereby it is more beneficial to take over an existing firm's operations and niche compared to expanding on its own. Acquisitions are often paid in cash, the acquiring company's stock or a combination of both.

Investopedia explains 'Acquisition'


Acquisitions can be either friendly or hostile. Friendly acquisitions occur when the target firm expresses its agreement to be acquired, whereas hostile acquisitions don't have the same agreement from the target firm and the acquiring firm needs to actively purchase large stakes of the target company in order to have a majority stake. In either case, the acquiring company often offers a premium on the market price of the target company's shares in order to entice shareholders to sell. For example, News Corp.'s bid to acquire Dow Jones was equal to a 65% premium over the stock's market price.
Read more: http://www.investopedia.com/terms/a/acquisition.asp#ixzz26pcob6uK

The biggest M & A deal was done by Reliance Communication which merged its telecoms tower business with GTL infrastructure Ltd for USD 11 billion. Bharti Airtel acquired Kuwait based Zain Telecom's African business for USD 10.7 billion. Reliance Industries acquired Infotel broadband for USD 1 Billion. The biggest deal in Pharmaceutical sector was the acquisition of the generic drug unit of Piramal Health care by USA based drug maker Abbot Laboratories (ABT) for USD 3720 million. In the Banking, Financial Services and Insurance sector, biggest deal was cut by Hinduja group, when it acquired Luxembourg based KBL European private bankers SA for USD 1.69 billion.
Read more: http://wiki.answers.com/Q/What_is_the_Latest_example_of_merger_and_acquisition#ixzz26pe NxH9a

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