Hi everybody, today wed like to make a presentation about the topic of M&A: Merger and Acquisition.

As you know this is a kind of FDI investment, right? Our group has 3 members: And the presentation today includes 3 main parts: firstly, we will give you the definition and classification of M&A, second is advantages and finally we will give you an example/ case study to make you understand clearly this kind of investment. Now I will start with definition Merger and Acquisition. Ok, its not difficult to understand, right? It means that: the combination between A and B, and A&B are the owner. So, whats about acquisition?......... ok, in this case is take over NOT combination, right? When I take over something of you => I am owner. But when I combine with you => so, we are the owner, right? So this is the difference between Merger and Acquisition. But in the fact, they usually use Merger and Acquisition together and call M&A because of many reasons. For example, company A is going to bankrupt and I want to buy it, so its acquisition, right? But its quite nagavtive so they usually call M&A to make it more positive. Ok, now I will go on with classification of M&A. There are many ways to classify this kind of investment but hier I give you 3 main kinds of M&A they are: horizontal, vertical and conglomerate. So what is horizontal: it is a merger in which 2 firms in the same industry combine. And the purpose hier is to achive economies of scale and scope.

For example: do you know the company: Procter & Gamle, in 2006 P&G bought Gillette and this make P&G become one of the most biggist

comsumer products company in the world. The second is Vertical Merger: is a merger in which one firm acquires a supplier or another firm that is closer to its existing customers. The purpose is to control supply or distribution channels. For example: Disney and Pixar: Disney is a famous company in the cartoon field. And Pixar is a company specialized in animation. The merger was also in 2006. And the last one is conglomerate: it is the case when 2 firms in unrelated business combine. And the purpose is to diversify the company. For example: Do you know the TATA Sky? Its a direct broadcast satellite television provider in India. Tata is one of the biggist corporation in India, they specialize in many fields. and Sky is a company in the field of digital technology. They were mergered in 2009. Ok, I think that you have had an overview of M&A. And now