Wednesday, December 30, 2009

Acquisition by Tata group

Acquisition: you might have heard this term in business world. This means that taking control of one company by another company. This can be done usually in order to enlarge their business and survive in foreign markets. The large company in a particular industry will acquire small companies in the same industry. You might hear so many success stories in acquisition. Let me give big example for this kind of acquisition, India’s largest group Tata acquired United Kingdom’s Tetley tea in the year 2000.
It has happened exactly ten years before and it has got almost all the shares of that industry. One important thing here is that Tata tea is smaller than the company it acquired. Tetley tea is twice big as Tata tea; this was the first big acquisition by an Indian company in international market. Tata has paid around four hundred and thirty one million USD for this acquisition. The executive director of Tata sons said that this is the model for business innovation and it acts as a role model for acquisition. This became the case study in acquisition.

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