Legal Literacy - This article discusses the basic concepts of mergers, acquisitions, and consolidations, as well as their impacts on companies, markets, and other stakeholders.
In the dynamics of global business, three concepts that often take center stage are mergers, acquisitions, and consolidations. These phenomena reflect complex business strategies and are often a major highlight in the corporate world.
Mergers, acquisitions, and consolidations are important strategies used by companies to achieve various business objectives, such as expanding market share, increasing operational efficiency, accessing new resources, or even reducing competition. In the context of today's economic globalization, increasingly fierce competition and rapid changes in technology and markets require companies to remain adaptive and innovative in implementing these strategies.
Through a deep understanding of mergers, acquisitions, and consolidations, it is hoped that readers can gain broader insights into how corporate dynamics evolve, how strategic decisions are made, and how these things affect the overall business ecosystem.
Merger
Article 1 number 9 Law on Limited Liability Companies jo. Article 109 number 1 Job Creation Law defines a merger as a legal act performed by one or more companies to merge with another existing company, resulting in the assets and liabilities of the merging company being transferred by law to the company receiving the merger, and subsequently the legal entity status of the merging company terminates by law.
An Example of a Company that Merged is
- The merger of PT Aplikasi Karya Anak Bangsa (Gojek) with PT Tokopedia (Tokopedia). The merger of Gojek and Tokopedia in Go-To on May 20, 2021.
- PT Toyota Astra Motor is one example of a merger company that was inaugurated on April 12, 1971. With a merger with three companies, namely PT Multi Astra, PT Toyota Mobilindo, and PT Toyota Engine Indonesia, PT Toyota Astra Motor was born as a vehicle importer company for Toyota.Â
- CIMB Niaga Bank is the result of the merger of two financial institutions, namely Bank Lippo and Bank Niaga. This merger process was carried out in response to Bank Indonesia's policy requiring banks to have single ownership. To fulfill these requirements, on June 3, 2008, the two banks merged and formed a new entity named PT CIMB Niaga, Tbk.
Acquisition
Article 1 number 11 of the Limited Liability Company Law jo. Article 109 number 1 of the Job Creation Law defines acquisition as a legal act carried out by a legal entity or individual to take over shares of a company which results in the transfer of control over the company.
An example of a company that carries out an Acquisition is
- PT XL Axiata's Acquisition of PT Link Net. In June 2022, Axiata Group Berhad and XL Axiata completed the acquisition of 66.03% of Link Net shares with a value of RM2.63 billion or approximately IDR 8.72 trillion. This acquisition process is part of XL's efforts to expand the provision of digital and convergence services to the community.
- Djarum Group's Acquisition of PT Solusi Tunas Pratama Tbk (SUPR). A well-known Indonesian company that has carried out an acquisition is the Djarum Group. Through its company PT Sarana Menara Nusantara Tbk (TOWR), the Djarum Group officially acquired 94.03% of PT Solusi Tunas Pratama Tbk (SUPR) shares with a transaction value reaching IDR 16.73 trillion.
- Medco Group's Acquisition of ConocoPhillips. Mining sector issuer PT Medco Energi Internasional Tbk. The oil and gas issuer founded by businessman Arifin Panigoro successfully acquired all shares issued by ConocoPhillips Indonesia Holding Ltd. (CIHL) with an acquisition value reaching USD 1.35 billion or equivalent to IDR 19 trillion (exchange rate of IDR 14,632 per USD).
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