Cross border

STUDY OF PROFITABILITY PERFORMANCE OF CROSS BORDER MERGERS - A CASE STUDY OF BHARTI AIRTEL & ZAIN AFRICA BV

This paper examines profitability of acquiring company in the pre-merger and post-merger period. The selected company is Bharti Airtel Ltd. which took over Zain Africa BV. in July, 2010. Various profitability ratios are computed and statistical t-test is done for evaluation of profitability of Bharti Airtel Ltd. The results reveal no significant difference on profitability due to merger. Merger has not resulted into improving profitability of the acquiring company.