Mergers & Acquisitions : An insight into Value Creation and Post Merger Synergies

In recent years there has been a splurge in M&A activities in hope of gaining integration synergies and surviving competition better. This paper is an attempt to study the impact of mergers and acquisitions on the share holder's wealth. This study focusses majorly on 5 major mergers that have taken place during the period 2011-2012. An empirical study is conducted to examine pre and post merger stock performance of the aforesaid companies. We have used event study analysis as a major tool to do a competitive study of the mergers. Apart from the stock market reaction to merger news this paper even deals with the synergies that the merging companies have achieved post integration.