ISSN: 2045-0621
Online from: 2011
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| Title: | Conglomerate diversification through cross-continent acquisition: Vedanta weds Cairn India |
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| Author(s): | V.K. Nangia (Professor and Head in the Department of Management Studies, Indian Institute of Technology Roorkee, Roorkee, India), Rajat Agarawal (Assistant Professor in the Department of Management Studies, Indian Institute of Technology Roorkee, Roorkee, India), Vinay Sharma (Assistant Professor in the Department of Management Studies, Indian Institute of Technology Roorkee, Roorkee, India), K. Srinivasa Reddy (Research Scholar in the Department of Management Studies, Indian Institute of Technology Roorkee, Roorkee, India) |
| Citation: | V.K. Nangia, Rajat Agarawal, Vinay Sharma, K. Srinivasa Reddy, "Conglomerate diversification through cross-continent acquisition: Vedanta weds Cairn India", Emerald Emerging Markets Case Studies Collection, (2011) |
| Keywords: | Acquisitions and mergers, Diversification, International marketing, Oil industry |
| Article type: | Case study |
| DOI: | 10.1108/20450621111127430 (Permanent URL) |
| Publisher: | Emerald Group Publishing Limited |
| Acknowledgements: | The authors are thankful to Ms Lekshmi Sreedharan and Mr Deepak Bhatt and their comments on case manuscript are profoundly acknowledged. Specifically, the authors would also like to thank Dr Atanu Adhikari, Regional Editor, EEMCS for his valuable review comments to contribute this structured script. Disclaimer. This case is written solely for educational purposes and is not intended to represent successful or unsuccessful managerial decision making. The author/s may have disguised names; financial and other recognizable information to protect confidentiality. |
| Abstract: | Title – Conglomerate diversification through cross-continent acquisition: Vedanta weds Cairn India. Subject area – corporate policy and strategy – mergers and acquisitions. Study level/applicability – Post graduation (MBA and other management degrees). It includes courses on Strategic Management, Business Environment and International Business. Case overview – Markets are becoming highly connective, accessible and communicative and reaching maturity at a very high phase. Acquisition is a choice to enhance the emerging and diversified markets. This case paper presents insights on Vedanta – Cairn India cross-border acquisition deal in Indian oil and exploration industry. This case synchronizes the gap between strategic planning and outcome of actions. The study exclusively evidences the reaction of stocks of all attached parties against acquisition announcement and compares with market performance. Expected learning outcomes – Strategic mapping of business negotiations, while in-organic choices, further the impact of economic, political, legal and regulatory factors on cross-border mergers and acquisitions (M&A), deliberate deal financing mechanism and leadership diplomacy. It proposes from the viewpoint of corporate in-organic alternatives and to strengthen the upcoming research field of strategy & policy. Supplementary materials – Global M&A market, shareholding pattern, income statement and balance sheet of Cairn India Ltd, financial figures of Vedanta Resources, tabular data on stock and index performance, deal structure and teaching note. |