Story of Indian Mergers and Acquistions by Manu Stephen https://padlet.com/manustephen21/ycb0yv9l7ma3ci4u Tata Steel acquisition of Bhushan Energy and Tata Steel BSL Ltd. with Bamnipal Steel Ltd. en-us 2020-08-04 15:44:11 UTC 2024-05-29 19:45:04 UTC hello@padlet.com Tata Steel BSL Ltd. with Bamnipal Steel Ltd. manustephen21 https://padlet.com/manustephen21/ycb0yv9l7ma3ci4u/wish/669184121 It is a classic story of a  Merger [1] using the Corporate Insolvency Resolution process of IBC,  where the acquirer was Bamnipal Steel Limited (BNL) wholly owned subsidiary of Tata Steel Limited and target was Bhushan Steel (BSL) [2]. It was one of an example for an horizontal deal in steel industry [3]. It was ratified with a deal Value of Rs 35200 Crore (2/3rd the loan owed by BSL)  with 3 Nominees on board [4].

]]> 2020-08-04 15:53:58 UTC https://padlet.com/manustephen21/ycb0yv9l7ma3ci4u/wish/669184121 Tata Steel BSL Ltd. with Bhushan Energy ariaa21 https://padlet.com/manustephen21/ycb0yv9l7ma3ci4u/wish/669231981 1. Takeover through IBC route

2. Acquirer: Tata Steel BSL Limited
     Target: Bhushan Energy

3. Tata Steel BSL Ltd: Steel Industry 
​     Bhushan Energy: Energy Industry
     It is a vertical deal.

4. Deal value: Rs 805 crore bid

5. The share price of Tata Steel rose by around 2 percent when the deal was announced, initially and the prices of the shares prices after two months declined roughly by 13 percent.

6. Bhushan Energy was a company with piles of debt under its name and was filing for a bankruptcy filing under IBC, 2016 where they had to find a suitable buyer within a period of 180 days. As Bhushan Energy was under stress to clear its debt and company had financial tensions, this will fall under neoclassical theory as Bhushan energy was in a financial burden and Tata Steel BSL Ltd got cheaper valuations for an acquisition deal.
]]> 2020-08-04 16:36:51 UTC https://padlet.com/manustephen21/ycb0yv9l7ma3ci4u/wish/669231981 manustephen21 https://padlet.com/manustephen21/ycb0yv9l7ma3ci4u/wish/669242132 The share price of the target company rose slightly after the announcement of deal, but there was a huge spike in the number of shares traded for a couple of days with a huge increase in turnover.
The share price of the acquirer company rose slightly after the announcement of deal, and there was a huge spike in the number of shares traded for the next trading day with a huge increase in turnover. However, the share price fell for next three days and rose again [5].

In the era of cross border mega mergers, this acquisition is one of the neo-classical mergers influenced by the industry's economic, technological and regulatory environment. Tata Steel was looking to double its capacity by FY22 to 23 MT, and Bhushan Steel (5MT) being a major producer of Flat products, Tata Steel is poised to garner 50% market share in this segment with its acquisition, especially Northern region. Locations of Bhushan Steel were close to the Auto hub of Pune & Gujarat and also gives access to the Northen market with added advantage and synergies in the raw material linkage, procurement & marketing and was hopeful that synergies created due to acquisition will be fruitful in the long run. Also, it was an easier acquisition helping the target from its debt and possible bankruptcy [6].

[------Evidences from- 1.https://mnacritique.mergersindia.com/tata-steel-acquires-bhushan-through-ibc-route/
2. https://economictimes.indiatimes.com/markets/stocks/news/tata-steel-board-approves-merger-of-bamnipal-steel-tata-steel-bsl/articleshow/69045850.cms
3.  https://www.telegraphindia.com/business/bhushan-to-merge-with-tata-steel/cid/1689417
4. https://www.tatasteel.com/media/6848/press-release.pdf-----------]]]> 2020-08-04 16:45:55 UTC https://padlet.com/manustephen21/ycb0yv9l7ma3ci4u/wish/669242132 ariaa21 https://padlet.com/manustephen21/ycb0yv9l7ma3ci4u/wish/669253548 2020-08-04 16:56:40 UTC https://padlet.com/manustephen21/ycb0yv9l7ma3ci4u/wish/669253548 ariaa21 https://padlet.com/manustephen21/ycb0yv9l7ma3ci4u/wish/669254667 2020-08-04 16:57:45 UTC https://padlet.com/manustephen21/ycb0yv9l7ma3ci4u/wish/669254667 Tata Steel BSL Ltd. with Bamnipal Steel Ltd. manustephen21 https://padlet.com/manustephen21/ycb0yv9l7ma3ci4u/wish/669261090 2020-08-04 17:03:26 UTC https://padlet.com/manustephen21/ycb0yv9l7ma3ci4u/wish/669261090 Financials Analysis manustephen21 https://padlet.com/manustephen21/ycb0yv9l7ma3ci4u/wish/669297769 2020-08-04 17:38:15 UTC https://padlet.com/manustephen21/ycb0yv9l7ma3ci4u/wish/669297769 Similar acquisitions!! manustephen21 https://padlet.com/manustephen21/ycb0yv9l7ma3ci4u/wish/669301042 2020-08-04 17:40:56 UTC https://padlet.com/manustephen21/ycb0yv9l7ma3ci4u/wish/669301042 Shareholding pattern manustephen21 https://padlet.com/manustephen21/ycb0yv9l7ma3ci4u/wish/669310631 2020-08-04 17:49:28 UTC https://padlet.com/manustephen21/ycb0yv9l7ma3ci4u/wish/669310631 Tata Steel completes acquisition of Bhushan Energy ariaa21 https://padlet.com/manustephen21/ycb0yv9l7ma3ci4u/wish/669318024 2020-08-04 17:56:47 UTC https://padlet.com/manustephen21/ycb0yv9l7ma3ci4u/wish/669318024 Tata Steel’s Rs 805 crore bid for Bhushan Energy gets nod ariaa21 https://padlet.com/manustephen21/ycb0yv9l7ma3ci4u/wish/669324545 2020-08-04 18:03:01 UTC https://padlet.com/manustephen21/ycb0yv9l7ma3ci4u/wish/669324545 The Race For Bhushan Group Firms ariaa21 https://padlet.com/manustephen21/ycb0yv9l7ma3ci4u/wish/669341908 2020-08-04 18:20:18 UTC https://padlet.com/manustephen21/ycb0yv9l7ma3ci4u/wish/669341908