Companies acquire other companies for a variety of reasons. They may be looking for economies of scale, diversification, greater market share, greater synergies, cost reductions, or new niche offerings. Other reasons for acquisitions are those listed below. Company executives have a fiduciary duty to conduct thorough due diligence with target companies before making an acquisition. Becoming the owner of a particular property; The act by which one acquires or acquires ownership of anything. Also used by the purchased item. Initial acquisition is when ownership of the thing arises from occupation or accession (q.v.,) or from the creative work of the individual, as in the case of patents and copyrights. Derivative acquisition occurs when ownership of an item passes from one person to another. This can happen by the act of law, as in cases of forfeiture, bankruptcy, inheritance, judgment, marriage or succession, or by the act of the parties, as in cases of gift, sale or exchange. In October 2016, AT&T (NYSE:T) and Time Warner (TWX) announced a deal in which AT&T will buy Time Warner for $85.4 billion and turn AT&T into a media heavyweight. In June 2018, AT&T completed the acquisition of Time Warner after a lengthy legal battle. If there is too much competition or supply, companies may consider acquisitions to reduce overcapacity, eliminate competition and focus on the most productive suppliers. It also means taking action not by voluntary agreement, but by the authority of a federal statute and by virtue of the binding powers conferred by that statute.

In the event of acquisition, ownership is definitively regained by the State and ownership of the property devolves to the State, R.L. Jain v. DDA, (2004) 4 SCC 79. We mostly hear about acquisitions of large, well-known companies because these huge and large deals tend to dominate the news. In fact, mergers and acquisitions (M&A) between small and medium-sized companies are more common than between large companies. The act of procuring goods. Acquisition means and implies the acquisition of all property of the expropriated owner, regardless of the nature or extent of such title. All the rights conferred on the original owner would be transferred to the acquirer upon acquisition, so that nothing would remain in the first one. On the other hand, in the event of taking possession, ownership of the property remains the property of the original owner, although he is excluded from possession or enjoyment of the property. 31 para.

Article 2 of the Indian Constitution itself makes a clear distinction between the acquisition of property and its appropriation in the public interest, although it equates the two in the sense that legislation authorizing any of these acts must provide for the payment of compensation to the displaced or expropriated owner of the property. In the context in which the word “acquisition” appears in Article 31(2), it can only refer to and refer to the acquisition of the entire shareholding of the previous holder by transfer of ownership, Charanjit Lal Chowdhury v Union of India, AIR 1951 SC 41:1950 SCR 869. Before making an acquisition, it is essential for a company to assess whether its target company is a good candidate. To be sure, the 2018 AT&T-Time Warner takeover deal will be as historically significant as the 2000 AOL-Time Warner deal; We can`t yet know exactly how. Today, 18 years means many lives – especially in media, communications and technology – and much will continue to change. For now, however, two things seem certain: While the words “acquisition” and “acquisition” technically mean almost the same thing, they have different nuances on Wall Street. In general, “acquisition” describes a primarily amicable transaction in which the two companies work together; “Acquisition” indicates that the target company opposes or strongly opposes the purchase; The term “merger” is used when the acquiring and target companies merge to form an entirely new entity. However, since each acquisition, acquisition and merger is an individual case with its own specifics and reasons for completing the transaction, the use of these terms tends to overlap. The acquisition of one company by another in order to achieve certain strategic objectives in terms of revenues, market share, product/service offerings or competition. An acquisition can be structured as a stock acquisition, where the acquiring company offers investors in the target company a certain price for their common shares, or as an asset acquisition, where the acquiring company offers to buy some or a majority of the target company in America, where the 1990s will be remembered as the decade of the dot-com bubble and megadeal. In particular, the late 1990s spawned a series of multibillion-dollar acquisitions not seen on Wall Street since the junk bond festivals of the 1980s.

From Yahoo!`s purchase of Broadcast.com for $5.7 billion in 1999 to AtHome Corporation`s purchase of Excite for $7.5 billion, companies have benefited from the “grow now, profitability later” phenomenon. These acquisitions peaked in the first weeks of 2000. An acquisition occurs when a company buys most or all of the shares of another company to take control of that company. The purchase of more than 50% of the shares and other assets of a target company allows the acquirer to make decisions regarding newly acquired assets without the consent of the company`s shareholders. Acquisitions, which are very common in business, can be made with the consent of the target company or despite its rejection. When approving there, there is often a no-shop clause during the process. Friendly acquisitions take place if the target company approves the acquisition; its board of directors (B or D or board) approves the acquisition. Friendly acquisitions often work in the mutual interest of acquiring and target companies. Both companies develop strategies to ensure that the acquiring company acquires the relevant assets, and they review the financial statements and other valuations for any obligations that may accompany the assets.

As soon as both parties agree to the conditions and comply with all legal requirements, the purchase takes place. Hostile acquisitions, commonly referred to as “hostile takeovers”, occur when the target company does not accept the acquisition. Hostile acquisitions do not have the same approval from the target company and, therefore, the acquiring company must actively acquire large shares of the target company in order to obtain a majority stake, which forces the acquisition. As a mutual merger of two companies into a new legal entity, a merger is a more than friendly acquisition. Mergers usually take place between companies that are pretty much the same in terms of basic characteristics – size, number of customers, scope of operations, etc. Merging companies strongly believe that their merged company would be more valuable to all parties (especially shareholders) than to any other. Wall Street Journal. “AtHome agrees to acquire Excite in a $7.5 billion market deal.” Accessed August 19, 2020. While a takeover is not exactly hostile, it does imply that companies are not equal on one or more material aspects. Using Legislative History in Interpreting Articles: An Introduction If a company wants to expand into another country, buying an existing business in that country might be the easiest way to enter a foreign market. The acquired company will already have its own people, brand and other intangible assets that could help the acquiring company enter a new market with a solid foundation.

In 2000, young upstart AOL bought the venerable giant Time Warner for $165 billion in a masterful display of exuberant self-confidence; It eclipsed all records and became the greatest fusion in history. The vision was that the new entity, AOL Time Warner, would become a dominant force in the information, publishing, music, entertainment, cable and Internet industries. After the merger, AOL became the largest technology company in America. Meaning – Acquisition: — Acquisition, does not automatically mean a transfer of physical possession to the State, unless otherwise indicated in express words of the greatest clarity, State U.P.