Question
What do you mean by acquisition? Give some examples.

Answer

Acquisition is a more general term, enveloping in itself a range of acquisition transactions. It could be leading to takeover of a company. Acquisition refers a corporate action in which a company buys almost, the target company's ownership stakes in order to assume control of the target firm. It is often made as part of a company's growth strategy whereby it is more beneficial to take over an existing firm's operations. It is often paid in cash, it could be the acquisition of company's stock, tangible assets, intangible assets, rights, acquisition of control, and other kinds of obligations. It is also known as a takeover, means the buying company takeover or acquire by another.
For Examples: Bharti Airtel acquired Zain Africa, February 2010
  1. Bharti Airtel is the largest mobile network in India. It is also expanding its reaches throughout the globe. Bharti Airtel added 180 million new customers in its list by acquiring an African Mobile Network provider called Zain Africa.
  2. Tata Steel acquired 100% stake in Corus Group on January 30, 2007. It was an all cash deal which cumulatively amounted to ₹ 12.2 billion.

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