Sun Pharma - Ranbaxy Merger: Understanding Cumulative Abnormal Return
This case attempts to enumerate a step by step procedure for calculating cumulative abnormal return (CAR) for the case of Sun Pharma – Ranbaxy merger. CAR is an academic way of analyzing merger performance based on stock market returns of both acquirer and target firm. It is observed that the cumulative abnormal return for both the acquirer and the target is positive.
Prerequisite Conceptual Understanding Before The Classroom Discussion
There is no need of pre-requisite conceptual understanding before the classroom discussion. This case is sufficient for an introduction to event study analysis. An elementary knowledge of linear regression would be beneficial.
Case Positioning and Setting
The following courses can utilize the case in their teaching material at MBA/Post Graduate level:
• Strategic Management
• International Business
• Mergers & Acquisitions
The following is a proposed a simple teaching plan with the intention of covering the requisite concepts and analysis within the class duration [Annexure (TN)-I]............