CORPORATE RESTRUCTURING THROUGH MERGERS AND ACQUISITIONS: A CASE STUDY

Abstract

With the rapid expansion of Liberalization, Privatization and Globalization (LPG) in global economy, mergers and acquisitions have become an important and effective vehicle of corporate restructuring. Mergers and Acquisitions aim at achieving optimum utilization of all available resources, accelerating the company’s growth with the help of removing the problem of paucity of resources including human resources, winning over competitive forces, achieving economies of scale, expanding sales volume, increasing the operational efficiency, achieving synergies, forming formidable human resource base, obtaining tax benefits with the help of proper tax planning, diversifying the business risk, installing an integrated research platform, reducing competition in the market, removing sickness, achieving savings in administrative costs and ultimately enhancing the value of the firm. In this backdrop, the present paper seeks to explain how a company restructures its business through mergers and acquisitions. A case study is also presented here to examine the efficiency of strategic decision taken by ICICI Bank, a leading private bank in India, in ensuring its overall value creation