Mergers and acquisitionby nissan

GOOD AFTERNOON

Presented to Bhagesh sir

MERGER AND ACQUISITIONS

Presented by-Shamal Irkar

Bhagyashri Mahajan

What is a Merger?

• Combination of two or more companies which is restructured to create positive growth.

• Two entities competing in a similar industry producing similar goods.

Introduction to Nissan• Established in 1933• Founders :Masujiro Hashimoto ,Kenjiro Den

Rokuro Aoyama, Meitaro Takeuch• Products: Automobiles, Outboard motors,

Forklift Trucks• Main markets: Japan, United States, Europe, • Revenue: ¥11.43 trillion (FY2013)• Profit: ¥389.0 billion (FY2013)

Introduction to Renault

• Is a French automaker • Founded :25 February 1899• Founders :Louis Renault, Marcel Renault, Fernand

Renault• Headquarters : France• Area served :Worldwide (118 countries)• Main products: Automobiles, commercial vehicles,• Revenue: €40.932 billion (2013)• Profit: €695 million (2013)

Pre-mergerRenault

(Expanding company)

1. Full capacity

2. high concentrate in Western Europe.

3. High profit

4. Intend to be global .

Nissan

(Declining company)

1.Failed to materialize to complete Toyota

2.54% capacity utilized

3.Poor internal communication

4.A lack of urgency & strategic future

5.Lack of cost control .

Similarity

&

• Large & Long history• Pariotism & Bureaucratic• Strong structure• A high proportion of senior management

• Little formal business education

Difference

&

• Social & culture difference • Language• Decision-making• Communications system• Labour regulations• Currency

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Merger and Acquisition

The alliance between Renault and Nissan was signed on 27th of

March, 1999

The Renault-Nissan Alliance is the sixth largest global automaker

Includes: Dacia, Infiniti, Nissan, Renault and Renault Samsung

Sold 8.3 million vehicles in 2013

2 global companies linked by cross-shareholdings

Significant presence in major world markets (United States, Europe,

Japan, China, India, Russia)

The deal between two companies in march 1999

Merger Benefit

1. Renault as a rescuer to Nissan

2. Nissan has strong market in United States and Asia

3. Renault present in Europe and the Mercosur market

4. Combined technological strengths

5. Renault’s considerable expertise and development, design, in market experiences.

6. Nissan’s engineering technology strength

Goals of the mergers

• Increase their profit and performances• To get a competitive level with the two world’s

automaker before Renault-Nissan which is Toyota and General Motors.

• Improve their quality• Improve their attractive level in products and

services• Improve their technology• Keep the culture and identity of the two brands.

Disadvantages of merger

• Give more then receive• Culture clash

THANK YOU FOR ATTENTION.....