Takeover refers to the process where one company acquires control over another by purchasing a substantial portion or all of its shares. It is a common corporate strategy used to expand business operations, enter new markets, or gain competitive advantages. Takeovers can significantly impact shareholders, management, and the overall market structure.

In a typical takeover, the acquiring company—known as the acquirer or bidder—offers to purchase shares of the target company, either directly from shareholders or through the open market. Once the acquirer obtains more than 50% of the voting rights, it gains effective control of the target company.

There are two primary types of takeovers: friendly and hostile. In a friendly takeover, the target company’s board supports the acquisition, believing it benefits shareholders and employees. In contrast, a hostile takeover occurs when the acquirer bypasses the board and directly approaches shareholders with an offer, often through a tender offer or open market purchase.

Takeovers are regulated by SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011, which ensure transparency and protect the interests of minority shareholders. These rules define thresholds for share acquisition, disclosure requirements, and mandatory open offers once a certain ownership level is crossed.

From an investor’s perspective, understanding takeovers is crucial because they often lead to changes in stock prices, management policies, and company valuation. While successful takeovers can create value through synergy and growth, they also carry risks such as cultural mismatch, overvaluation, or integration challenges.

In summary, a takeover is a key corporate event that reshapes ownership and strategic direction. Investors should stay informed, track regulatory disclosures, and assess long-term implications before making investment decisions.