After the acquisition of Monsanto, Bayer's market capitalization grew to $120 billion, divided into 826.9 million shares (with a share price of $128). The merger led to a steady increase in Bayer's profits. Dividend payments increased to €5.9 per share.
In March 2019, a court ruled that Bayer's agricultural herbicides were harmful to health. This led to a series of lawsuits against the company. By the end of March 2019, the stock price had fallen to $56 per share, the lowest since 2012.
VTB
In 2018, VTB made a strategic decision to merge indonesia number list with VTB24 Bank, which was liquidated as a separate legal entity. This step was taken by the board of shareholders in order to optimize capital. As a result, over the past year after the merger, the organization's net profit has doubled (179 billion rubles). The main block of VTB securities (60.9%) belongs to the Russian government through the Ministry of Finance and the Federal Property Management Agency.
Read also!
"Marketing Tips: How to Show That Your Product is the Best"
Read more
In April 2018, the price of VTB shares reached an annual maximum of 5.4 kopecks. After that, the price decreased, reaching 3.5 kopecks by the end of the year. It should be noted that VTB management acquired securities from shareholders who disagreed with the merger for a fixed amount of only 3.8 kopecks.
AOL and Time Warner Cable
In the early 2000s, American AOL was one of the world's leading Internet service providers, providing services to residents of North America. At that time, Time Warner Cable, an American media company, provided a wide range of services, including cable television and Internet connection. AOL occupied a high position among companies providing news and entertainment content.
Examples of mergers and acquisitions in Russia and around the world
Source: shutterstock.com
In 2001, both companies decided to merge in order to strengthen their presence in both the American and global markets. The deal was a record one. Its value reached $186 billion. However, the results of the initiative were less successful than expected. Over time, the merged company lost its leading position. By 2009, its capitalization had fallen 15 times compared to the initial one, which led to large-scale layoffs.
In 2009, the board of shareholders decided to reorganize the media conglomerate by dividing it into two independent companies. However, this did not bring the desired results. Today, both organizations have lost their positions in the market.
Other major M&A deals worth highlighting include:
Google's acquisition of Motorola in 2011 for $13.2 billion;
Microsoft's $9 billion merger with Skype in 2011;
Facebook's purchase of WhatsApp in 2014 for $22 billion.
Download a useful document on the topic:
Checklist: How to Achieve Your Goals in Negotiations with Clients
Frequently Asked Questions About Mergers
Merging companies has many advantages. However, as with any transaction, the success of the merger depends on a careful analysis of the benefits and assessment of the risks. It is difficult for private investors to predict how management will act, so investing in a merger of organizations may lead to losses.
In what cases is it necessary to obtain permission from the antimonopoly authority for a merger of companies?
In some cases, permission from the antimonopoly authority is required to merge the assets of companies. This is mandatory if we are talking about merging enterprises managed by different people. However, if the companies belong to the same owner, permission is not required. In this case, you only need to notify the antimonopoly authority within 30 days from the date of registration of the new legal entity and warn it of the planned reorganization one month before it takes place.
If, after the merger of Russian companies, the resources of the new legal entity exceed 200 million rubles, then it will be necessary to notify the antimonopoly service within 45 days after the reorganization.
Permission is also required if the company's total income is more than 7 million rubles, or if the products of one organization occupy more than 35% of the product market.
How does a company merger affect the