New Delhi: Lanco Infratech will acquire Australiabased Griffin Coal Mining and Carpenter Mine Management (Griffin Coal), continuing the trend of Indian power producers acquiring mines abroad to fuel their plants.
Lanco Infrastructure will acquire the coal mining asset through its subsidiary Lanco Resources Australia. The company did not disclose the deal size but a source directly involved in the matter said the deal was worth around $750 million. Hyderabad-based GVK group, the only rival bidder in the final round, had quoted between $600 and $700 million.
There will be at least five such transactions for overseas coal assets worth $500 to $1 billion by Indian companies next year, said a banker, who is working closely with at least two potential buyers. Power utilities , such as Tata Power and Reliance Power , which have already acquired coal assets abroad, and Lanco, which announced the deal on Wednesday, hope to secure fuel supplies with such acquisitions.
“This is an operating asset. It will help support our coal requirement, but even after this acquisition, a chunk of our coal requirement would be from domestic sources,” chief financial officer Suresh Kumar told ET.
The mine produces over 4 million tonnes a year. The output can be scaled up to over 15 million tones per year after the development of infrastructure.
The acquisition is a part of Lanco Infratech’s strategy to acquire coal assets and linkages for its power projects. The company plans to raise its power generation capacity to 15,000 megawatts (mw) by 2015 from 2,100 mw now, Mr Kumar said.
HSBC, which was Lanco’s financial advisor to this deal, has also promised funding support. An overseas unit of ICICI Bank has also committed funds to Lanco Resources Australia. Griffin was advised on the deal by UBS. The advisor to the GVK group was RBS.
Two other Indian companies from the power and infrastructure space had earlier approached Griffin, which owns the largest coal mines in western Australia. Those two companies backed out before the final round of bidding on valuation mismatch.
“There are only so many coal assets left in the world, mostly in Africa, US, Indonesia and Australia. At some point the buyers will have to step up and match the seller’s price. The price of these assets are unlikely to decline , “ said an investment banker, who represented one of the company’s that earlier backed out.
Success in my Habit
Monday, December 27, 2010
Tata Chemicals' UK subsidiary to take over British Salt
New Delhi: Tata Chemicals Ltd’s UK subsidiary Brunner Mond group has signed a definite agreement to acquire 100% of British Salt Ltd, a leading salt manufacturer in the UK, for £93 million (roughly Rs.655 crore) in a deal that will ensure a steady source of raw material and also give it a toehold in the UK food and industrial salt market.
Brunner Mond makes soda ash, widely used in several chemical industries, consumer products and food ingredients. British Salt has a 50% share in the UK’s pure dried vacuum salt products market, and it owns several brine (salt) wells in that country with a residual life of at least 50 years.
R. Mukundan, managing director, Tata Chemicals, said: “The acquisition is in line with the strategy of Tata Chemicals to deepen its presence in the ‘food and farm sectors’ and will result in securitising raw material for Brunner Mond’s operations. This will help Brunner Mond maintain its low-cost manufacturing position in Europe and provides a great opportunity to optimise the costs further.” An analyst who tracks the sector said the deal was an advantageous one for Tata Chemicals.
“British Salt is an unlisted firm with salt manufacturing capacity of more than 400,000 tonnes, comparable to Tata Chemicals’ domestic capacity of 600,000 tonnes. According to back-of-the-envelope calculations, the company can add Rs.400 crore to the consolidated revenues (3.5% of fiscal 2012 sales) and 5.6% to the consolidated profit for the fiscal 2012,” said Dikshit Mittal, a research analyst at Alchemy Share and Stock Brokers Pvt. Ltd.
Tata Chemicals’ chief financial officer P.K. Ghose said the transaction is entirely financed by debt on a non-recourse basis to itself. This means that the debt raised to fund the acquisition, which was made through Tata Chemicals Europe Holdings Ltd, a holding company, will not directly create a liability for it.
Mittal added that the deal is valued at around six times the operational profit of British Salt and that the transaction seems “fairly valued”.
The Tata group, of which Tata Chemicals Ltd is a part, has had a successful track record of acquisitions in the UK. In the late 1990s, Tata Tea acquired Tetley. More recently, Tata Steel acquired Corus and Tata Motors, Jaguar Land Rover.
Tata Chemicals is currently the world’s second largest producer of soda ash with manufacturing plants in India, the UK, Kenya and the US.
On Monday, its shares rose 0.12% to close at Rs.371.60 on the Bombay Stock Exchange on a day when the exchange’s benchmark index, the Sensex, went up 0.12% to close at 19,888.88.
Brunner Mond makes soda ash, widely used in several chemical industries, consumer products and food ingredients. British Salt has a 50% share in the UK’s pure dried vacuum salt products market, and it owns several brine (salt) wells in that country with a residual life of at least 50 years.
R. Mukundan, managing director, Tata Chemicals, said: “The acquisition is in line with the strategy of Tata Chemicals to deepen its presence in the ‘food and farm sectors’ and will result in securitising raw material for Brunner Mond’s operations. This will help Brunner Mond maintain its low-cost manufacturing position in Europe and provides a great opportunity to optimise the costs further.” An analyst who tracks the sector said the deal was an advantageous one for Tata Chemicals.
“British Salt is an unlisted firm with salt manufacturing capacity of more than 400,000 tonnes, comparable to Tata Chemicals’ domestic capacity of 600,000 tonnes. According to back-of-the-envelope calculations, the company can add Rs.400 crore to the consolidated revenues (3.5% of fiscal 2012 sales) and 5.6% to the consolidated profit for the fiscal 2012,” said Dikshit Mittal, a research analyst at Alchemy Share and Stock Brokers Pvt. Ltd.
Tata Chemicals’ chief financial officer P.K. Ghose said the transaction is entirely financed by debt on a non-recourse basis to itself. This means that the debt raised to fund the acquisition, which was made through Tata Chemicals Europe Holdings Ltd, a holding company, will not directly create a liability for it.
Mittal added that the deal is valued at around six times the operational profit of British Salt and that the transaction seems “fairly valued”.
The Tata group, of which Tata Chemicals Ltd is a part, has had a successful track record of acquisitions in the UK. In the late 1990s, Tata Tea acquired Tetley. More recently, Tata Steel acquired Corus and Tata Motors, Jaguar Land Rover.
Tata Chemicals is currently the world’s second largest producer of soda ash with manufacturing plants in India, the UK, Kenya and the US.
On Monday, its shares rose 0.12% to close at Rs.371.60 on the Bombay Stock Exchange on a day when the exchange’s benchmark index, the Sensex, went up 0.12% to close at 19,888.88.
Lincoln Pharma ties up with US based Human Biosciences Inc
Mumbai/ Ahmedabad: Ahmedabad based Lincoln Pharmaceuticals Ltd. (LPL), has tied up with US based Human Biosciences Inc (HBI) for exclusive marketing and distribution of two of HBI's wound care management products in India, Medifil and Skin Temp that enjoy a 22 per cent market share in its category in India. The company can set up a manufacturing unit in the future to increase production of these products.
Speaking on the development, Mahendra G Patel, managing director, Lincoln Pharmaceutical Ltd. said, “Our mission at Lincoln Pharmaceuticals is to provide customers with healthcare products of high quality at an affordable price. We are planning to set up a manufacturing unit in India to increase production and expand our reach so that more people can avail the benefits of these products.”
Collagen products have reconstructive properties and are meant for wound care management.
Medifil and Skin Temp, considered a helps to stop the bleeding immediately by providing faster and better wound healing.
In addition, it has better aesthetic value as it heals without leaving any scar formation. Medifil and Skin Temp are specifically useful in repairing wounds during plastic and burns surgery, general surgery, orthopedic surgery and gynecological surgery and is particularly beneficial for diabetic amputations due to its faster healing properties. Medifil is available in an absorbable Collagen based granule and Skin Temp in an absorbable Collagen based patch.
Lincoln Pharmaceuticals is into manufacturing and marketing therapeutic products under WHO-GMP guidelines.
Speaking on the development, Mahendra G Patel, managing director, Lincoln Pharmaceutical Ltd. said, “Our mission at Lincoln Pharmaceuticals is to provide customers with healthcare products of high quality at an affordable price. We are planning to set up a manufacturing unit in India to increase production and expand our reach so that more people can avail the benefits of these products.”
Collagen products have reconstructive properties and are meant for wound care management.
Medifil and Skin Temp, considered a helps to stop the bleeding immediately by providing faster and better wound healing.
In addition, it has better aesthetic value as it heals without leaving any scar formation. Medifil and Skin Temp are specifically useful in repairing wounds during plastic and burns surgery, general surgery, orthopedic surgery and gynecological surgery and is particularly beneficial for diabetic amputations due to its faster healing properties. Medifil is available in an absorbable Collagen based granule and Skin Temp in an absorbable Collagen based patch.
Lincoln Pharmaceuticals is into manufacturing and marketing therapeutic products under WHO-GMP guidelines.
ONGC gets Brazil's approval to farm out block in Santos basin
New Delhi: ANP, the petroleum regulatory authority of Brazil, has approved farming out a block to ONGC Videsh Ltd. ONGC Campos Limitada (OCL), Brazil, a wholly-owned subsidiary of OVL, had acquired the 100 per cent stake in the block, BM-S-73 (formerly S-M-1413) during ninth bidding round in 2007.
The offshore concession is located in the Santos basin and covers an area of 160.04 square kilometres. The concession is a part of Brazil’s ninth licensing round and is currently in exploration phase, OVL said in a press statement.
ONGC Campos Limitada, Petroleo Brasileiro SA, Petrobras and Ecopetrol Oleo Gas do Brasil LTDA, had entered into an agreement under the terms of which Petrobras will get 43.5 per cent share, Ecopetrol will get 13 per cent in the block BM-S-73 and 43.5 per cent will remain with ONGC Campos Limitada, the operator of the block.
ONGC Campos Limitada will get 43.5 per cent share from Petrobras and Ecopetrol in their block BM-S-74, who will have 43.5 per cent and 13 per cent share, respectively. The approval for this block is still awaited.
The offshore concession is located in the Santos basin and covers an area of 160.04 square kilometres. The concession is a part of Brazil’s ninth licensing round and is currently in exploration phase, OVL said in a press statement.
ONGC Campos Limitada, Petroleo Brasileiro SA, Petrobras and Ecopetrol Oleo Gas do Brasil LTDA, had entered into an agreement under the terms of which Petrobras will get 43.5 per cent share, Ecopetrol will get 13 per cent in the block BM-S-73 and 43.5 per cent will remain with ONGC Campos Limitada, the operator of the block.
ONGC Campos Limitada will get 43.5 per cent share from Petrobras and Ecopetrol in their block BM-S-74, who will have 43.5 per cent and 13 per cent share, respectively. The approval for this block is still awaited.
Indian firms grab 34% of SA govt's AIDS drug order
New Delhi: Indian companies have bagged 34.3 per cent of the AIDS drugs supply contracts announced by the South African government last week. The anti-retroviral drug tender floated by South Africa is the largest of its kind in the world.
Of the Rs 2,831 crore worth order for anti-retroviral drugs, about Rs 970 crore have come to four Indian companies primarily through the joint venture (JV) entities set up by Ranbaxy and Cipla, the South African Health Ministry has stated.
While Ranbaxy’s South African JV Sonke Pharmaceuticals bagged a supply contract that comes to 21.9 per cent (over Rs 600 crore) of the total tender value, Cipla-Medpro cornered 5.1 per cent (about Rs 145 crore) share. The other two firms are Strides Acrolab (4.2 per cent or approximately Rs 118 crore) and Aurobindo Pharma (3.1 per cent or approximately Rs 90 crore).
On the whole, 10 firms won the tenders, the supplies for which will begin from January 1, 2011 and go on till December 31, 2012.
With 40 per cent share, South African firm Aspen Pharmacare claimed the highest pie. Ranbaxy’s JV is the second in the list. Ranbaxy will manufacture the medicines from its South African and Indian facilities, a company statement said.
The institutional supplies in overseas countries are increasingly becoming a major business model for Indian medicine exporters as more countries, including UK and Europe, are looking at reducing their healthcare costs. South Africa had succeeded in bringing down the cost of its ARV drug procurement by 53.1 per cent by making the tenders more competitive.
Of the Rs 2,831 crore worth order for anti-retroviral drugs, about Rs 970 crore have come to four Indian companies primarily through the joint venture (JV) entities set up by Ranbaxy and Cipla, the South African Health Ministry has stated.
While Ranbaxy’s South African JV Sonke Pharmaceuticals bagged a supply contract that comes to 21.9 per cent (over Rs 600 crore) of the total tender value, Cipla-Medpro cornered 5.1 per cent (about Rs 145 crore) share. The other two firms are Strides Acrolab (4.2 per cent or approximately Rs 118 crore) and Aurobindo Pharma (3.1 per cent or approximately Rs 90 crore).
On the whole, 10 firms won the tenders, the supplies for which will begin from January 1, 2011 and go on till December 31, 2012.
With 40 per cent share, South African firm Aspen Pharmacare claimed the highest pie. Ranbaxy’s JV is the second in the list. Ranbaxy will manufacture the medicines from its South African and Indian facilities, a company statement said.
The institutional supplies in overseas countries are increasingly becoming a major business model for Indian medicine exporters as more countries, including UK and Europe, are looking at reducing their healthcare costs. South Africa had succeeded in bringing down the cost of its ARV drug procurement by 53.1 per cent by making the tenders more competitive.
India, Singapore bilateral trade to touch US$ 22.89 billion in 2010
New Delhi: The bilateral trade between India and Singapore is expected to touch US$ 22.89 billion in 2010, according to Dr T C A Raghavan, Indian High Commissioner to Singapore.
"Singapore is a very important partner of India," said Raghavan, while addressing Singapore press conference for 'The India Show 2011' to be held January 14-16, 2011 in the Singapore. He further added that "We have seen a very good recovery from 2008 and a good financial investment climate."
Furthermore, Mr Anand Sharma, Commerce and Industry Minister would lead India’s high level ministerial and CEOs delegation to Singapore for ‘The India Show.’ The show is largest ever of its kind in Southeast Asia.
About 80 Indian corporations will be exhibiting at the show, which would also have a symposium aimed at further nurturing the good relationship between the two countries.
The January 14 'India Symposium' - themed 'Indovations: Ideas for the World', would highlight the innovation in the Indian manufacturing, services and infrastructure sectors. The show is part of the Indian government's 'Look East Policy,' and would familiarise business visitors with the latest in Indian products and technology, help them understand the trends and offer opportunities in various sectors of the Indian economy as well as have the corporate worlds of the two countries discuss business co-operations.
The Indian businesses participating in the show would be seeking to establish partnership and strategic links with Singapore's small and medium enterprises (SME) as well as major corporations in the infrastructure sector, especially seeking out water-technology and urban development expertise, Raghavan added.
Among others, ANTRIX, the Indian space research organisation (ISRO), would be participating in the show. It would launch Singapore's first commercial satellite in about a month, said Dr Raghavan.
"Singapore is a very important partner of India," said Raghavan, while addressing Singapore press conference for 'The India Show 2011' to be held January 14-16, 2011 in the Singapore. He further added that "We have seen a very good recovery from 2008 and a good financial investment climate."
Furthermore, Mr Anand Sharma, Commerce and Industry Minister would lead India’s high level ministerial and CEOs delegation to Singapore for ‘The India Show.’ The show is largest ever of its kind in Southeast Asia.
About 80 Indian corporations will be exhibiting at the show, which would also have a symposium aimed at further nurturing the good relationship between the two countries.
The January 14 'India Symposium' - themed 'Indovations: Ideas for the World', would highlight the innovation in the Indian manufacturing, services and infrastructure sectors. The show is part of the Indian government's 'Look East Policy,' and would familiarise business visitors with the latest in Indian products and technology, help them understand the trends and offer opportunities in various sectors of the Indian economy as well as have the corporate worlds of the two countries discuss business co-operations.
The Indian businesses participating in the show would be seeking to establish partnership and strategic links with Singapore's small and medium enterprises (SME) as well as major corporations in the infrastructure sector, especially seeking out water-technology and urban development expertise, Raghavan added.
Among others, ANTRIX, the Indian space research organisation (ISRO), would be participating in the show. It would launch Singapore's first commercial satellite in about a month, said Dr Raghavan.
Indices to measure price changes in services to roll out by March
New Delhi: India will soon have indices measuring price changes in services that account for above 60% of the national income, helping in more accurate measures of inflation.
The government has shortlisted 10 sectors for which indices will be created, an official with the industries ministry told ET. At least two of them could be rolled out by the end of March 2011 while another four will be ready by the end of the next fiscal, he said.
“These (the indices) would give a more comprehensive picture of the price trends in the economy,” said C Rangarajan , Chairman of the Prime Minister’s Economic Advisory Council (PMEAC).
The services that would have price indices include transport, banking, insurance, communication, ports and storage. Defence services, health and education are three other sectors that will have a price index. All the indices will add up to a single index for services.
Over the years, services have become the most dynamic sector of the economy. They contributed above 60% of the country’s gross domestic product (GDP) in 2009-10, up from 29% in 1950.
“We are currently able to track the services production to some extent by the GDP estimates, but the trend in prices is not very clear,” said Indranil Pan, chief economist at private sector lender Kotak Mahindra Bank .
The only reliable price measure India has at present is the wholesale price index (WPI) for goods. The consumer price index for industrial workers has some implicit elements of services, but otherwise there is no measure available to measure the price changes in the largest sector of the economy.
The most comprehensive measure of inflation, the GDP deflator , is also based on inputs from the wholesale price index and retail indices.
It has to be recognised that creating an index for services is far more difficult than creating an index for goods, said CP Chandrasekhar, professor of economics at Jawaharlal Nehru University, who chairs the committee that is developing the index.
United Kingdom, a financial nerve centre of the world, is still developing a price index for banking, legal and accountancy services.
Before an index is created, it goes through a stage where various methodologies are assessed and one is selected. The users of the index are then given a chance to comment on the methodologies.
Some of the indices are at the second stage where comments have been invited.
The department of industrial policy and promotion, which is coordinating the indices, is also looking into the issue of the periodicity of the release, as data would not be available at the same frequency in every service. Data has to be collected from private and public enterprises and that would also create difficulties.
The government has shortlisted 10 sectors for which indices will be created, an official with the industries ministry told ET. At least two of them could be rolled out by the end of March 2011 while another four will be ready by the end of the next fiscal, he said.
“These (the indices) would give a more comprehensive picture of the price trends in the economy,” said C Rangarajan , Chairman of the Prime Minister’s Economic Advisory Council (PMEAC).
The services that would have price indices include transport, banking, insurance, communication, ports and storage. Defence services, health and education are three other sectors that will have a price index. All the indices will add up to a single index for services.
Over the years, services have become the most dynamic sector of the economy. They contributed above 60% of the country’s gross domestic product (GDP) in 2009-10, up from 29% in 1950.
“We are currently able to track the services production to some extent by the GDP estimates, but the trend in prices is not very clear,” said Indranil Pan, chief economist at private sector lender Kotak Mahindra Bank .
The only reliable price measure India has at present is the wholesale price index (WPI) for goods. The consumer price index for industrial workers has some implicit elements of services, but otherwise there is no measure available to measure the price changes in the largest sector of the economy.
The most comprehensive measure of inflation, the GDP deflator , is also based on inputs from the wholesale price index and retail indices.
It has to be recognised that creating an index for services is far more difficult than creating an index for goods, said CP Chandrasekhar, professor of economics at Jawaharlal Nehru University, who chairs the committee that is developing the index.
United Kingdom, a financial nerve centre of the world, is still developing a price index for banking, legal and accountancy services.
Before an index is created, it goes through a stage where various methodologies are assessed and one is selected. The users of the index are then given a chance to comment on the methodologies.
Some of the indices are at the second stage where comments have been invited.
The department of industrial policy and promotion, which is coordinating the indices, is also looking into the issue of the periodicity of the release, as data would not be available at the same frequency in every service. Data has to be collected from private and public enterprises and that would also create difficulties.
Domestic air traffic records 25 per cent y-o-y growth
New Delhi: The Indian aviation industry has reported 25 per cent increase on a year-on-year (y-o-y) basis in passengers flown in November 2010, according to the latest data released by the Directorate-General of Civil Aviation (DGCA). Seven domestic airlines flew 4,875,000 passengers in November 2010. It is the highest carriage recorded during a single month in 2010.
The Delhi-based, IndiGo, recorded the best performance carrying 8,43,000 passengers in November 2010 and almost 3,00,000 more passengers than in the corresponding period in the 2009.
Jet Airways and SpiceJet each carried 1,73,000 more passengers compared to November 2009
The Delhi-based, IndiGo, recorded the best performance carrying 8,43,000 passengers in November 2010 and almost 3,00,000 more passengers than in the corresponding period in the 2009.
Jet Airways and SpiceJet each carried 1,73,000 more passengers compared to November 2009
Excise sops on expansion in HP, Uttarakhand to stay
New Delhi: Manufacturers in Himachal Pradesh and Uttarakhand will get excise duty exemptions on even the fresh investment they make to expand capacity or launch a new line of business from their existing plants.
The decision will benefit hundreds of companies such as motorcycle manufacturer Hero Honda and consumer products makers Hindustan Unilever and Dabur .
A circular issued by the Central Board of Excise and Customs (CBEC) says companies running factories in these states will enjoy the excise rebate on addition or modification of their plant or if they produce new products from these plants even though the 100% excise duty holiday had lapsed on March 31.
It added the period of exemption would, however, remain 10 years and not get extended on account of modifications or additions.
The circular follows a finance ministry directive to CBEC to clear the air over the scheme as companies were under the impression that they would not get excise rebate if they made fresh investments in their plants after March 31. This had discouraged them to expand their operations in the two states.
Companies in business in the two states can manufacture new products by enhancing their manufacturing capacities now, said Pratik Jain, a partner at KPMG .
An extreme example would be if a car manufacturer enjoying excise rebate decides to produce food products, he can claim the rebate on new products as well after March 31.
The government had launched the tax rebate scheme to encourage industrial development of the two hill states.
"This issue has been a matter of varied interpretation and disputes, which should now be put to rest and spur investments in these states," Jain added.
States like Punjab had protested the scheme arguing that industrial units were shifting to the two states to enjoy the excise rebate. Analysts say the relaxation in rules is sure to cause more heartburn.
The decision will benefit hundreds of companies such as motorcycle manufacturer Hero Honda and consumer products makers Hindustan Unilever and Dabur .
A circular issued by the Central Board of Excise and Customs (CBEC) says companies running factories in these states will enjoy the excise rebate on addition or modification of their plant or if they produce new products from these plants even though the 100% excise duty holiday had lapsed on March 31.
It added the period of exemption would, however, remain 10 years and not get extended on account of modifications or additions.
The circular follows a finance ministry directive to CBEC to clear the air over the scheme as companies were under the impression that they would not get excise rebate if they made fresh investments in their plants after March 31. This had discouraged them to expand their operations in the two states.
Companies in business in the two states can manufacture new products by enhancing their manufacturing capacities now, said Pratik Jain, a partner at KPMG .
An extreme example would be if a car manufacturer enjoying excise rebate decides to produce food products, he can claim the rebate on new products as well after March 31.
The government had launched the tax rebate scheme to encourage industrial development of the two hill states.
"This issue has been a matter of varied interpretation and disputes, which should now be put to rest and spur investments in these states," Jain added.
States like Punjab had protested the scheme arguing that industrial units were shifting to the two states to enjoy the excise rebate. Analysts say the relaxation in rules is sure to cause more heartburn.
India Inc sealed record US$ 55 billion M&A deals so far in 2010
New Delhi: India Inc sealed mergers and acquisitions (M&A) deals worth US$ 55 billion so far in 2010, including a record number of billion-dollar transactions.
The total deal value surpassed the previous record set in 2007 and big-ticket deals made a comeback as corporate India regained its deal-making appetite with more than US$ 9 billion deals, the highest-ever in a single year.
"Indian companies are ready to pay what they perceive to be the right valuation. They are not just hunting for bargain buys, but they would take advantage of the economic slowdown and the fact that many loss-making companies in developed markets are looking to sell out," according to Freny Patel, Associate Editor, DealReporter (part of Mergermarket Group), Asia-Pacific.
The M&A deals showcased the high global ambitions set up by India Inc who acquired foreign assets worth US$ 27.25 billion with a view to expand their market share.
"There have been acquisitions in South America, Europe, Australia, Singapore, etc, for some time now. More recently, there is a lot of interest in developing economies in Africa, Indonesia, Malaysia, etc," according to C G Srividya, Specialist Advisory Services Partner, Grant Thornton India .
So far in 2010 (till December 15), the total deal announced value amounted to US$ 54.6 billion, significantly more than the previous high of US$ 42 billion achieved in 2007, according to research firm VCCEdge.
The total deal value surpassed the previous record set in 2007 and big-ticket deals made a comeback as corporate India regained its deal-making appetite with more than US$ 9 billion deals, the highest-ever in a single year.
"Indian companies are ready to pay what they perceive to be the right valuation. They are not just hunting for bargain buys, but they would take advantage of the economic slowdown and the fact that many loss-making companies in developed markets are looking to sell out," according to Freny Patel, Associate Editor, DealReporter (part of Mergermarket Group), Asia-Pacific.
The M&A deals showcased the high global ambitions set up by India Inc who acquired foreign assets worth US$ 27.25 billion with a view to expand their market share.
"There have been acquisitions in South America, Europe, Australia, Singapore, etc, for some time now. More recently, there is a lot of interest in developing economies in Africa, Indonesia, Malaysia, etc," according to C G Srividya, Specialist Advisory Services Partner, Grant Thornton India .
So far in 2010 (till December 15), the total deal announced value amounted to US$ 54.6 billion, significantly more than the previous high of US$ 42 billion achieved in 2007, according to research firm VCCEdge.
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