Mergers are an inevitable part of the corporate lifecycle. Companies merge to take on a larger rival company and sometimes they merge to save the other. Here we will look at the top 3 mergers in India as they impact the Indian consumer.

Flipkart-Walmart deal

Flipkart is an e-commerce giant in India. It acquired fashion and lifestyle website ‘Myntra’ in 2014 for Rs 2000 crores. It catapulted it into the clothing e-commerce domain just as it moved from selling books to other consumer goods. Acquiring Myntra and Jabong made Flipkart the top apparel e-commerce company.

The following year in 2018, Wal-Mart took over Flipkart in a deal of $16 billion, defeating Amazon. This deal gave Wal-Mart a chance to compete with Amazon in its field. Amazon already hit hard the retail chain market of Wal-Mart. This deal saved Amazon from gaining a monopoly in the Indian e-commerce market.

Jaguar-Land Rover and Tata acquisition

In 2008, Ford was running its subsidiary Jaguar-Land Rover at a loss of $520 million. It was about to shut down as nobody wanted to buy it. Later, Tata bought it for $2.3 billion and it reported a profit of $3.4 billion in 2019.

It is said that Tata once wanted to sell its motor division to Ford but it was humiliated. When Tata bought Jaguar-Land Rover, Ford thanked it for doing so.

Vodafone-Idea merger

The Indian telecom sector has been in a state of crisis for a long time. Since the 2G scam, government policies and the market have hampered this sector.

The advent of Reliance Jio shook the market and caused the two telecom giants to join forces, which made it the second largest telecom network in India after Airtel. Vodafone has a 45.1% stake in the holding while Aditya Birla Group and Idea shareholders hold 54.9%.