Mergers and Acquisitions by Indian Companies
February 26, 2008 4:45pm CST
Until upto a couple of years back,the news that Indian companies having acquired American-European entities was very rare.However the scenario has taken a sudden U turn. Nowadays news of the Indian Companies acquiring a foreigh businesses are more common than other way round. Buoyant Indian Economy,extra cash with Indian corporates,Government policies and newly found dynamism in Indian businessman have all contributed to this new acquisition trend. Indian companies are now aggressively looking at North American and European Markets to spread their wings and become the global players. The Indian IT and ITES companies already have a strong presence in foreign markets,however other sectors are also now growing rapidly. The increasing engagement of the Indian companies in the world markets,particularly in the US, is not only an indication of maturity reached by Indian Industry but also the extent of their participation in the overall globalization process. Indian outbound deals which were valued at US0.7 Bil in 2000-2001,increased to US$4.3 Bil in 2005. and further crossed US$15 Bil mark in 2006.Infact 2006 will be remembered in India's corporate history as a year when Indian companies covered a lot go new ground. They went shopping across the globe and acquired a number of strategically significant companies. This comprised 60% of the total mergers and acquisitions activity in India in 2006.And almost 99 percent of the acquisitions were made with cash payments. The total mergers and acquisitions deals for the year during the Jan-May2007 have been 287 with a value of US$47.37 Bil.Of the mergers and acquisition activity in India.The total deals for the period Jan-Feb 2007 have been 102 with a value of US$ 36.8 Bil. Of these the toal outbound cross border deals have been 40 with a value of US$21 Bil. There were 111 deals with vale of US$3.41 Bil. Of these the number of cross border outbound deals was 30. The sectors attracting the investments by Corporate India include metals,pharmaceuticals,industry goods,automotive components,beverages,cosmetics and energy. Based on the above facts do you agree what India Inc is the most happening in the world????