However, some foreign MNCs, possibly lured by the world’’s second fastest growing economy sought to enter India by acquiring into local companies mainly in telecom, steel and pharma sectors.
The cross-border deals, worth about $four billion may have been bigger if the estimated $12-billion takeover of LyondellBasell by RIL happened this year, and Bharti Airtel’’s $23-billion worth deal with MTN not failed for the second time.
Meanwhile, it was Essar group that boosted the trend and constantly went looking overseas in sectors such as oil, telecom and technology and kept the Indian flag flying on deal tables in one of the most difficult times for global economy.
There was good news from Tatas also, who seemed to have overcome the affect of crisis on their overseas acquisitions of Jaguar-Land Rover and Corus in Europe.
Grant Thornton stated that total 267 M&A deals were announced during 2009, for a total value of 10.03 billion dollars while the deal sphere was dominated by domestic deals as there were 142 domestic deals.
It had an announced value of $5.80 billion, while there were 125 cross-border deals with an announced value of $4.23 billion.
Moreover, the major deals of the year included merger of Reliance Industries with Reliance Petroleum, Russia’’s $676 million investment in Sistema Shyam Telecom, Tech Mahindra’’s 31% stake buy in tainted IT firm Mahindra Satyam.
Other major M&As of the year include Sanofi Pasteur 80% stake buy in Shantha Biotechnics for $664.89 million and Quippo Telecom’’s $533.33 million investment in Tata Tele Services” telecom tower and infrastructure arm.
On the other hand, Lakshmi Mittal-led ArcelorMittal, which is waiting for long to establish a presence in India, finally made an entry by acquiring a majority stake in domestic steel firm Uttam Galva.
No comments:
Post a Comment