Mergers & Acquisitions

Toshiba and L&T plans to form a joint venture to set up manufacturing facilities. The idea is to merge the two companies to coexist as one on the Indian market, using the benefits of each one to accomplish an expanding market in the regions of Asia, middle east and Australia.
L&T is the biggest company of engineering in India, so this is a great opportunity to unified forces for the benefit of both companies.
Merging means that two companies get together to form a new one to accomplish wider purposes, but both companies remain existing, this is the case of Toshiba and L&T that merge together to facilitate comercial activities in the region combining expertise.
In the other hand an acquisition is when a company takes over a target company, and the target company cease to exist, and the buyer company is the one remaining supplemented with the just acquired.
• If Toshiba would of bought L&T and ceased it from its name, it would be an acquisition.
• If Toshiba would of bought L&T to become its owner, but do not change its name and existence, it would be a case of both merger and acquisition; Both companies exist, they both use their expertise and facilities, but one owns the other over utilities.


Pradeep Pandey, E. B. (2010, Oct 25). The Economic Times. Retrieved Oct 24, 2010, from The Economic Times: http://economictimes.indiatimes.com/news/news-by-industry/indl-goods-/-svs/engineering/Toshiba-LT-in-talks-for-motor-unit/articleshow/6806273.cms