A Case-Study of Merger of TOMCO with Hindustan Lever Limited (HLL)
Following the advent of the economic liberalization, HLL-TOMCO merger which became operative on April 1, 1993, was one of the most significant mergers in Indian corporate history. This merger had immense impact on the Indian corporate scenario.
Established in 1917 under the Indian Companies Act, 1913, TOMCO was the older of these two companies . TOMCO was incorporated in 1917, and it was there in the sprawling and resilient Indian market with a rich 75 year-long heritage in soaps and detergents. HLL was incorporated approximately 16 years after the incorporation of TOMCO. It was the first private company to be converted into public company in 1956. Apart from it, HLL was an Indian subsidiary of an Anglo-Dutch company by the name of Unilever (the parent
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In India it is popularly known as HLL. However, it due course of time, HLL was converted into a Public Limited Company on 27 October, 1956. It is a subsidiary of the multinational giant-company by the name of Unilever Group. This group is also a corporate giant in the FMCG sector known worldwide as the ^''Unilever Group". At the time of unification, the company was the largest player in such sectors as soaps, detergents, basic chemicals, toilet preparations, fertilizers, in Maharashtra, Madhya Pradesh, Uttar Pradesh, Kamataka, Punjab, Andhra Pradesh, New Delhi, Pondicherry and Tamil Nadu. To merge TOMCO with HLL was a strategic move, because owing to this merger, the merged entity became the biggest competitor of the much publicized strategic alliance of Proctor and Gamble with Godrej which also is in the same business industry. It means that the latter is also in the manufacturing and marketing of soaps, detergents, chemicals, toiletries of various uses just like HLL
The exclusionary rule should be applied to illegal arrests. In the case of the United States versus Toscanino, several standards were utilized by the court in the appeals from a narcotics conviction that was submitted against Toscanino in the Eastern District of New York. This verdict was enforced by Chief Judge Jacob Mishler after a jury trial. Toscanino was sentenced to 20 years in prison and fined $20,000. He struggled that the court attained jurisdiction over him unlawfully through the conduct of American agents by kidnapping him in Uruguay. Toscanino argued that illegal electronic surveillance, and tortured played a role in his abduction when extraditing him to the United States for the purpose of prosecution. His allegations were concerning
Our case study deals with Mass Merger. Since the 90s, together with the globalization of business, Mergers and Acquisitions have developed at an incredible pace. Thus, companies from all over the world can be lead to work together as one single corporation. Moreover, the world has become interdependent not only economically, but also culturally, that is to say one culture may influence another one or different cultures can be mixed. It is then obvious that intercultural issues have to be solved.
Theoretically it is assumed that mergers improve the performance of the acquiring firm due to
A merger is a partial or total combination of two separate business firms and forming of a new one. There are predominantly two kinds of mergers: partial and complete. Partial merger usually involves the combination of joint ventures and inter-corporate stock purchases. Complete mergers are results in blending of identities and the creation of a single succeeding firm. (Hicks, 2012, p 491). Mergers in the healthcare sector, particularly horizontal hospital mergers wherein two or more hospitals merge into a single corporation, are increasing both in frequency and importance. (Gaughan, 2002). This paper is an attempt to study the impact of the merger of two competing healthcare organization and will also attempt to propose appropriate
AN example, in 2008, Hewlett Packet purchased Electronic Data Systems to enhance the services aspect of the partnering technology offerings (Yurko, 1996). Marketing networks now give companies much wider customer access including overnight services. One such merger is the Takeda Pharmaceutical Inc. Although distribution chains work great to increase the bottom line, these mergers are not well received by federal agencies like the Federal Trade Commission. The concern being monopolization which is when one company controls too much of a given industry. Another driver of mergers is a desire for a leadership change. Sometimes the owner of the high technology firms simply wants to sale out and has problems finding a successor within to take the helm. Hence, a merger holds an
As you are aware, I have been working on lowering your phone bills for each of the stores. James approved moving forward with TRCA. TRCA is a company that is helping us convert as many stores as possible over to Spectrotel. There are some stores that will not be able to be converted just yet; due to phone contracts or on the Hughes VoIP test. As, the contracts come up we will convert them to Spectrotel as well.
With 81% of market shares in Brazil, Unilever is the leader of the Detergent Powder market. It owns three brands in Brazil: Omo, Minerva and Campeiro. Omo is the top brand of the portfolio and perceived as a high quality at a premium position. Minerva is a medium quality product with low brand awareness. Campeiro is a well-known cheapest product but with a low top of mind penetration. In order to
Pikula (1999) observes that in merging two or more entities, the management of the companies must adhere to the Sherman Anti-trust Act which was established in 1890. This act was specifically established to prevent mergers from creating monopolies and cartels with an aim to exploit the consumers through determining prevailing market prices. If the merger results in a monopoly, it won’t be approved by the government. Employee contractual agreements must be considered before, during and after mergers. For the merger to go on seamlessly there should be shareholder approval. Initial approval by shareholders for the companies to consolidate their operations helps prevent conflicts from shareholders after the merger. Lastly, regulatory approval should be considered. The management must register the newly formed company. In addition, managers from the merging parties must consider agreements and contracts that the parties are engaging in as these will be transferred to the new company upon the merger.
As seen in exhibit 2 as well, the company’s unit share and dollar share steadily increased minimally from 2005 to 2007. Unit share increased from 21% to 21.3%, while dollar share increased from 15.7% to 16.1%. Similarly, US sales increased in HPL’s Target Markets for skin care, oral hygiene, personal hygiene, and hand and body care from 2003 to 2007, making the package more appealing to the company. With HPL’s sales into its retail channels increasing from 2003 to 2007, in addition to the increase in sales, label shares, and such aspects as revenue, it is evident that the company’s financial performance for the past few years has been favorable.
Stacey greets the client politely and informs that she has added the assigned MB to the email to further assist with the client's request.
Mergers and acquisition plays an important role in survival/vitalization of a corporation in today’s market. It continues to be a breakthrough strategy for improving innovation of a company’s product or services, market share, share price etc.
product segments – Oral, Personal and Home Care; and Pet Nutrition. The company operates in more than 200 countries and this geographic diversity and balance help to reduce the Company’s exposure to businesses and other risks in any one country or part of the world. The company’s main competitors are Proctor & Gamble (PG), Johnson & Johnson (JNJ), Church Dwight & Company (CHD) and Clorox & Company (CLX).
Chapter 7: Merger and Acquisition Strategy ---- House of Tata: Acquiring a Global Footprint (written by Tarun Khanna, Krishna G. Palepu, and Richard J. Bullock)
Enron was formed through the merger of Houston Natural Gas (HNG) of Houston, Texas and InterNorth of Omaha, Nebraska. HNG covered the Florida and California market, their pipelines running from east to west. InterNorth catered the Iowa and Minnesota market, their pipelines running from north to south. HNG was formed in 1920, providing gas to retail customers in Houston. The company sold its retail gas business in 1920 and ventured into the gas exploration and production business. In the year 1984, HNG had $3.7 billion in assets, over $2 billion in sales and booked profits of $123 million. In 1984, InterNorth had revenues of $7.5 billion. The reason behind the merger was that InterNorth faced the threat of a buyout by corporate raiders as it had low debt and high revenues. The conservative operations and low debt of InterNorth made it a target for corporate raiders who planned to use its cash reserves and borrowing capacity to extract funds for themselves. On the other hand, HNG had borrowed heavily to expand its pipelines in the Florida and California markets. Therefore, merging with Houston Natural Gas made perfect sense as it fended off corporate raiders. In May 1984, InterNorth acquired HNG for $2.4 billion, under the leadership of Sam Segnar who was the CEO of InterNorth at that time. The negotiations for HNG were handled by John Wing and he was able to negotiate a price for HNG shares which was 40% higher than the ongoing market price.
Unilever, founded in 1929, is an Anglo–Dutch multinational consumer goods company. Its headquarters are in London, England and in Rotterdam, Netherlands as well. It is the world's third-largest consumer goods company as of 2012. It is also one of the oldest multinational companies in the world, its products include food, beverages, cleaning agents and personal care products. And these products are available in 190 countries.