Here are 10 Examples of Popular Company Mergers and Acquisitions
Corporate Secretary Service Indonesia – When it comes to growing a company, what comes to mind is most likely opening branches elsewhere. But there is another way that companies often use, which is through Merger & Acquisition. Have you ever heard of these terms? If not then you should read it here. Here we will only discuss 10 examples of Merger & Acquisition companies.
Examples of Company Mergers
Here are 5 cases of company mergers that have occurred in Indonesian and foreign companies:
1. Indosat and Tri Indonesia merger
One of the most famous examples of company mergers in Indonesia is between PT Indosat Tbk and PT Hutchison 3 Indonesia. This merger will effectively begin on January 4, 2022. Based on information from CNBC Indonesia, the merger of the 2 leading telecommunications services is estimated to reach a nominal value of US$ 6 billion (around Rp 86 trillion). The value obtained assuming 1 USD = IDR 14,300, 00.
2. Exxon and Mobil Merger
Turning abroad, you can also see an example of a successful merger between Exxon and Mobil in 1988. It is a merger that can be considered gigantic in scale because both are the two largest petroleum producing companies in the United States. So it is not surprising that the value of the deal was very fantastic for that year at USD 80 billion. Investors were competing to invest up to 293%.
3. Merger by PT Lippo Karawaci Tbk
The previous examples of company mergers only involved 2 company parties. While Lippo Karawaci has so far merged 8 companies into part of its team which includes:
- PT Siloam Healthcare Tbk
- PT Lippo Land Development Tbk
- PT Metropolitan Tatanugraha
- PT Kartika Abadi Sejahtera
- PT Ananggadipa Berkat Mulia
- PT Lippo Karawaci Tbk
- PT Sumber Waluyo
- PT Aryaduta Hotels Tbk
4. Merger of Bank CIMB Niaga and Bank Lippo
Flashback to 2008, there was an example of a merger in the banking sector, namely between Bank CIMB Niaga and Bank Lippo. The merger took place at the initiative of Bank Indonesia. In fact, this merger had a positive impact on the existence of the two banks until now.
5. PT Toyota Astra Motor which is a merger of 4 companies
The last example of a company merger is PT Toyota Astra Motor, which in fact is a combination of:
- PT Toyota Mobilindo Tbk
- PT Multi Astra Tbk
- PT Toyota Engine Indonesia Tbk
- PT Toyota Astra Motor Tbk
Read Also: Reasons for Company Closure and its Legal Basis
Example of Company Acquisition
After discussing examples of company mergers, we now turn to the moment when a company makes an acquisition of another company. Here are 5 of them summarized by global expansion and CNBC Indonesia:
1. Acquisition of the Company that Manages Ranch Market by BliBli
The first list opens with an example of an acquisition company in Indonesia where one of Djarum’s E-commerce, BliBli. They acquired 51% share ownership of Ranch Market, PT Supra Boga Lestari Tbk (RANC) worth Rp 2.03 trillion. Per share at that time had a price of IDR 2,550.00.
2. Google Acquires Android
Google also made a large acquisition of USD 50 million to a smartphone software provider company, Android, in 2005. A very smart move because thanks to this acquisition, Google is now also able to compete with Microsoft and Apple. Especially now when reflecting on the fact that 70% of smartphone users use Android.
3. Disney Acquires Pixar and Marvel
Disney in 2006 had made a breakthrough by acquiring another leading production house, Pixar. The acquisition resulted in a deal value of USD 7.4 billion. Three years later, Disney again made a surprising move by taking ownership of the super hero animation company with the Marvel brand. A move that arguably saved marvel whose financial condition at the time was also critical.
4. Facebook Acquires Whatsapp
When talking about acquisitions, of course you still remember when Facebook in 2014 bought Whatsapp with a nominal value of USD 22 billion. This takeover is a clear example of reducing competition.
This reflects on Facebook’s dominance which was disrupted because developing countries prefer to use WhatsApp. But on the other hand, the technology from Facebook also allows areas previously still not covered by WhatsApp to now use it.
5. Djarum Group Acquires PT Solusi Tunas Pratama Tbk (SUPR)
If previously BliBli is now another subsidiary of the Djarum Group, namely PT Sarana Menara Nusantara Tbk (TOWR) also acquired 94.03% of PT SUPR shares. In this case, TOWR had to spend up to Rp 16.73 trillion on October 1, 2023.
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