Acquisitions and Merger MCQ Quiz - Objective Question with Answer for Acquisitions and Merger - Download Free PDF

The correct answer is Allahabad Bank.

Key Points

• Bank of Baroda, Dena Bank, and Vijaya Bank were part of a merger process that was completed in 2019. These three banks merged, with Bank of Baroda being the anchor bank.
• Allahabad Bank, however, was not part of this specific merger. Instead, it was merged with Indian Bank as part of a different consolidation plan by the Indian government in 2020.

Additional Information

• Bank Mergers in India:
  • Bank mergers aim to create stronger financial institutions with improved operational efficiency.
  • Mergers help in reducing the number of non-performing assets (NPAs) and bolstering capital adequacy.
• Impact of Bank Mergers:
  • They lead to enhanced lending capacity and improved risk management.
  • Customers benefit from a wider range of products and services offered by the merged entity.
• Recent Bank Mergers:
  • In April 2020, 10 public sector banks were merged into 4 to streamline operations and improve the banking sector's health.
  • These mergers are part of the Indian government's strategy to create large, globally competitive banks.
• Future of Banking in India:
  • The focus is on digital transformation, financial inclusion, and meeting the growing needs of the economy.
  • Bank mergers are expected to continue as the sector evolves to address emerging challenges and opportunities.

The correct answer is Tata Electronics Private Limited (TEPL).

In News

• On January 7, 2025, the Competition Commission of India (CCI) approved Tata Electronics Private Limited (TEPL), a wholly-owned subsidiary of Tata Sons, to acquire a majority stake in Pegatron Technology India.

Key Points

• TEPL will acquire the majority shareholding of Pegatron India in two tranches.
• Pegatron India is a subsidiary of Pegatron Corporation, a Taiwan-based company providing electronics manufacturing services (EMS).
• The acquisition aligns with TEPL’s expansion in the electronics manufacturing industry in India.
• TEPL is also engaged in manufacturing smartphone enclosures and providing EMS for smartphones.

Additional Information

• Tata Electronics Private Limited (TEPL)
  • A wholly-owned subsidiary of Tata Sons, specializing in high-precision components and electronics manufacturing services.
  • Operates an iPhone assembly plant in Karnataka and is expanding its facilities in Tamil Nadu.
• Pegatron Technology India
  • A subsidiary of Pegatron Corporation, engaged in providing EMS for global smartphone brands like Apple.
  • Exports products to North America, Asia, and Europe, in addition to selling in India.
• Competition Commission of India (CCI)
  • A statutory body responsible for promoting competition and preventing anti-competitive practices in India.
  • Ensures fair competition in the market by scrutinizing mergers and acquisitions.

The correct answer is SBI Life Insurance.

In News

• In December 2024, SBI Life Insurance Company Limited acquired a 10% stake in Bima Sugam India Federation for ₹6.6 crore.

Key Points

• SBI Life invested ₹6.6 crore, purchasing 66 lakh equity shares at a face value of ₹10 each.
• Bima Sugam India Federation, incorporated on June 18, 2024, aims to create a centralized marketplace for insurance products and services.
• This initiative is supported by the Insurance Regulatory and Development Authority of India (IRDAI) to enhance insurance accessibility and penetration.
• SBI Life's investment aligns with its strategy to support digital infrastructure in the insurance sector.

Additional Information

• SBI Life Insurance Company Limited
  • Founded in March 2001 as a joint venture between State Bank of India (SBI) and BNP Paribas Cardif.
  • SBI holds a 55.50% stake in the company, while BNP Paribas Cardif owns 0.22%.
  • As of March 2023, the company managed assets worth ₹352,422 crore and had a Gross Written Premium of ₹67,320 crore.
  • Headquartered in Mumbai, Maharashtra, with Mr. Amit Jhigran serving as the Managing Director and CEO.
• Bima Sugam India Federation
  • Incorporated on June 18, 2024, as an unlisted company under Section 8 of the Companies Act, 2013.
  • Established to develop and operate a centralized digital marketplace for insurance products and services in India.
  • Supported by IRDAI as part of initiatives to increase insurance penetration and enhance customer experience.
• Insurance Regulatory and Development Authority of India (IRDAI)
  • Established in 1999 as an autonomous body to regulate and promote the insurance industry in India.
  • Aims to protect policyholders' interests and ensure the financial soundness of the insurance sector.
  • Initiatives include promoting digital platforms like Bima Sugam to streamline insurance processes and accessibility.
• Digital Public Infrastructure in Insurance
  • Refers to digital platforms and tools designed to enhance the accessibility, efficiency, and transparency of insurance services.
  • Examples include centralized marketplaces, digital policy issuance, and online claim processing systems.
  • Aims to reduce operational costs, improve customer experience, and increase insurance penetration, especially in underserved areas.

The correct answer is option 1 i.e. Central Bank of India

• The government plans to merge 10 public sector banks into 4.
• The number of nationalized banks in the country becomes 27 in 2017 to 12 at present.
• In a first three-way amalgamation, Vijaya Bank and Dena Bank will merge with Bank of Baroda (BoB) from April 1, 2019, to create the third-largest lender of the country.
• New mergers include:
  • Punjab National Bank, Oriental Bank of Commerce, and the United Bank of India will combine to form the nation’s second-largest lender.
  • Canara Bank and Syndicate Bank.
  • Indian Bank will merge with Allahabad Bank.
  • Union Bank of India will amalgamate with Andhra Bank and Corporation Bank.

The correct answer is 2000.

Key Points

• Tata Tea acquired the UK-based Tetley in the year 2000.
• This acquisition was part of Tata Tea's strategy to expand its footprint globally.
• The deal was valued at about £271 million, making it one of the largest cross-border acquisitions by an Indian company at that time.
• Post-acquisition, Tata Tea became the second-largest tea company in the world.
• This acquisition helped Tata Tea to diversify its product portfolio and enter new markets.

Additional Information

• Tata Group
  • Founded in 1868 by Jamsetji Tata, the Tata Group is one of India's largest and oldest conglomerates.
  • The group operates in over 100 countries across six continents.
  • It has a diverse portfolio including steel, automobiles, IT services, telecommunications, and consumer goods.
• Globalization Strategy
  • Acquisitions and mergers are common strategies for companies looking to expand their global footprint.
  • Such strategies allow companies to enter new markets, access new customer bases, and diversify their product offerings.
• Tea Industry
  • Tea is one of the most widely consumed beverages in the world.
  • The global tea market is driven by increasing health awareness and the introduction of various flavors and varieties.
  • India and China are the largest producers of tea globally.
• Tetley
  • Founded in 1837, Tetley is one of the oldest tea companies in the world.
  • It is known for its wide range of tea products including black tea, green tea, and flavored teas.
  • Post-acquisition, Tetley has helped Tata Tea in expanding its market reach in Europe and North America.

The correct answer is option 3: 

• Disney purchased the legendary studio of 21st Century Fox in March 2019 for $71.3 bn.
• Disney had purchased many studios and media companies earlier also. Following are some of those:
  • Capital cities/ABC in 1996.
  • Fox Family in 2001.
  • Pixar in 2006.
  • Marvel Entertainment in 2009.
  • Lucasfilm in 2012.
  • Bam tech in 2017.
  • 21^st Century Fox in 2019.

Disney:

• It is a media company that was founded by Walt and Roy O. Disney in 1923.
• It is headquartered in California, USA.

The correct answer is Elon Musk.

Key Points

• Twitter has announced to sell its social media company to the world’s richest man Elon Musk.
• The deal will see Musk acquire the social network for approximately $44 billion with shares valued at $54.20.
• Musk had announced his takeover bid on April 14, 2022.
• Twitter is an American microblogging and social networking service which was founded in 2006.

Additional Information

• Twitter is an American microblogging and social networking service on which users post and interact with messages known as "tweets".
• Headquarters: San Francisco, California, United States
• Founders: Jack Dorsey, Biz Stone, Evan Williams, Noah Glass

The correct answer is Air Asia.

Key Points

• Tata Sons merged Air India with Air Asia.
• Air India, which was recently acquired by the Tata group, has approached the Competition Commission of India (CCI) for acquiring a 100 percent stake in Air Asia India.
• Tatas had raised its stake in AirAsia India to 83.67 percent in December 2020.
• AirAsia India started flying in June 2014.

Additional Information

• Recent Merger and  Acquisitions:
  • ITC acquired a 10.07% stake in Blupin Technologies Pvt Ltd for up to Rs 39.34 crore.
  • HDFC Ltd. has entered a binding agreement to sell a 10% stake in wholly-owned subsidiary HDFC Capital to an arm of Abu Dhabi Investment Authority (ADIA) for 184 crore.
  • Bharti Airtel Ltd on March 29 acquired the Indus Towers Ltd from UK’s Vodafone Group Plc for Rs 2,388.05 crore.
  • Multiplex giants PVR and Inox announced the merger of their two companies on 28 March 2022.
  • Glance InMobi (“Glance"), a Singapore-based consumer internet company, acquired Indian gaming company Gambit Sports Pvt Ltd. on 26 Mar'22.
  • Bharti Airtel acquired Vodafone's 4.7% stake in Indus Towers for 2,388 crore exchange filing on 25 March 2022.

The correct answer is Bank of Baroda.

Key Points

• Dena Bank and Vijaya Bank have been merged with Bank of Baroda with effect from April 1, 2019.
• According to the Scheme of Amalgamation, shareholders of Vijaya Bank will get 402 equity shares of BoB for every 1,000 shares held.
• In the case of Dena Bank, its shareholders will get 110 shares of BoB for every 1,000 shares. 
• With a combined business of Rs 14.82 lakh crore, BOB became the third-largest bank after State Bank of India (SBI) and ICICI Bank.

Additional Information

The correct answer is Allahabad Bank

• Allahabad Bank was merged with Indian Bank from April 1, 2020.

Important Points

• The government plans to merge 10 public sector banks into 4.
• The number of nationalized banks in the country becomes 27 in 2017 to 12 at present.
• In a first three-way amalgamation, Vijaya Bank and Dena Bank will merge with Bank of Baroda (BoB) from April 1, 2019, to create the third-largest lender of the country.

Additional Information

• New mergers include:
  • Punjab National Bank, Oriental Bank of Commerce, and the United Bank of India will combine to form the nation’s second-largest lender. Canara Bank and Syndicate Bank.
  • Union Bank of India will amalgamate with Andhra Bank and Corporation Bank.

The correct answer is Tech Mahindra Ltd.

Key Points

• Tech Mahindra Ltd has agreed to buy Com Tec Co IT Ltd (CTC), a software solutions and service provider with development centres in Latvia and Belarus.
• It will buy it for €310 million (around ₹2,620 crores).
• Tech Mahindra is also investing a total of €20 million for a 25% ownership in SWFT and Surance platforms, two InsurTech ventures funded by CTC.

Additional Information

• Tech Mahindra has approved a proposal for the acquisition of a 100 percent stake in Allyis India and Green Investments.
• Tech Mahindra has signed a joint declaration with UN Global Compact and hence joined 155 global companies in calling for policies to build resilience against future shocks.
• Tech Mahindra:
  •  CEO: C. P. Gurnani (As of Jan 2022).
  • Headquarters: Pune;
  • Founder: Anand Mahindra
  • Founded: 1986.

The correct answer is Tata Steel Long Products.

Key Points

• Cabinet Committee on Economic Affairs has approved the sale of Neelachal Ispat Nigam Limited (NINL) to Tata Steel Long Products.
• The government does not hold any equity in the company. 
• NINL has an integrated steel plant with a capacity of 1.1 MT, at Kalinganagar, Odisha.

Important Points

•  The transaction was made through an open-market, competitive bidding process towards the enterprise value of the company.
• This is the first instance of privatisation of a public sector steel manufacturing enterprise in India.  

Additional Information

• NINL is a joint venture of 4 Central Public Sector Enterprises and 2 Odisha government Public Sector Undertakings.
• 4 CPSEs are:
  • MMTC (Metals and Minerals Trading Corporation)
  • NMDC (National Mineral Development Corporation)
  • BHEL (Bharat Heavy Electricals Limited)
  • MECON (Metallurgical & Engineering Consultants)
• 2 PSUs of Odisha government are:
  • OMC (Odisha Mining Corporation)
  • IPICOL (Industrial Promotion & Investment Corporation of Odisha Limited).

The correct answer is Sarguja Rail Corridor.

Key Points

• Adani Ports and Special Economic Zone (APSEZ)'s composite scheme to acquire Sarguja Rail Corridor Pvt Ltd (SRCPL) has been approved by the National Company Law Tribunal (NCLT).
• It will be effective from the appointed date of April 1, 2021.
• Once consolidated, SRCPL will add Rs 450 crore or five percent of APSEZ's total Ebitda (earnings before interest, tax, depreciation, and amortisation).

Additional Information​ 

• Anil Kumar Lahoti has been appointed as the Chief Executive Officer and Chairman of the Railway Board.
  will be taking over the chairmanship from Vinay Kumar Tripathi on January 1.
• ​The Indian Railways is constructing the tallest pier railway bridge in the world in Manipur.
• The ambitious project of the Railways in Manipur is part of the Jiribam-Imphal railway line.
  • The bridge is being built at a height of 141 meters.
  • The total length of the Manipur bridge will be 703 meters.
  • Once completed, the project will enable passengers to cover 111 km of distance in 2-2.5 hrs.
• Indian Railways has launched an integrated one-stop solution “Rail Madad” in which the national transporter has merged a number of existing helplines that were used for various purposes into one.
• The government of UP has renamed the Jhansi Railway Station, in Jhansi, UP as “Veerangana Laxmibai Railway Station” after Rani Laxmibai.
• Government of India and the Germany Development Bank- KfW (Kreditanstalt fur Wiederaufbau) signed a 26 million euros loan for a 40.35 km Surat Metro Rail project in Gujarat.

The correct answer is option 3 i.e., Air India

• Air India is the Indian airline enterprise owned by the Government of India. It is headquartered in New Delhi.
• Air India has announced the plan to privatize the airlines as it was incurring a loss of Rs 20-25 Cr. daily. This was announced by the Civil Aviation Minister of India, Shri Hardeep Puri.
• Air India was founded on 15th October 1932 by J.R.D Tata as Tata Airlines.
• It became a public limited company in the year 1960 and was renamed as Air India.
• In 2007, Air India and Indian Airlines were merged under Air India Limited.
• Air Asia is a Malaysian low-cost airline headquartered near Kuala Lumpur.
• Vistara is an Indian airline company headquartered at Gurugram.

• In August 2018, Hindalco’s wholly-owned subsidiary Novelis Inc. announced the acquisition of a global aluminium rolled products company Aleris Corporation that is headquartered in the US.
• Kumar Mangalam Birla is the Chairman of Hindalco.
• Aleris has its manufacturing facilities in Asia, Europe, and the US.