Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
Popular Search: TAX RATES - GOODS TAXABLE @ 4% :: due date for vat payment :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: empanelment :: list of goods taxed at 4% :: ARTICLES ON INPUT TAX CREDIT IN VAT :: VAT Audit :: articles on VAT and GST in India :: ACCOUNTING STANDARDS :: Central Excise rule to resale the machines to a new company :: TDS :: form 3cd :: cpt :: VAT RATES :: ACCOUNTING STANDARD
« Mergers and Acquisitions »
 The Role Of Brand In Petroleum Mergers And Acquisitions
 Mergers and Acquisitions: What Happens After the Announcement?
 Agency mergers and acquisitions continue to be strong for first-half 2016
 The Intricacies Of Financial And Legal Relationships In M&A
 3 integration considerations for Mergers & Acquisitions
 Mergers and acquisitions take centre-stage as funding for start-ups dries up
 Mergers and Acquisitions reach highest quarterly value in India
 18 digital health exits (mergers, acquisitions, and IPOs) in Q3 2016
 Number of mergers and acquisitions rise in 2016, Experian finds
 Indian startups are more willing than ever to acquire and be acquired
 India’s mergers and acquisitions reaches highest quarterly value in Q3 2016: Report

This year, M&A deals set to touch $100 bn
October, 08th 2010

India has climbed seven notches to the 10th position in the global takeover league table and is poised to set a record this year on abundant funding as companies go in search of technology and new markets.

Corporate valuations and financial strength favour more overseas acquisitions by Indian companies than the other way round, say experts. The steep run-up in Indian stock prices could be a deterrent in multinational companies buying domestic ones, they say.

There will be more outbound deals, than acquisition of Indian companies, says Frank Hancock, managing director, corporate finance, Barclays Capital India , who forecasts $100 billion in M&A deals this year. This is not for a lack of interest but more because there are more strong Indian companies than weak ones.

Indian mergers and acquisitions rose 226% in the first nine months of this year to $56.7 billion in 948 deals, compared with $17.4 billion in 747 transactions a year earlier, data provider Daelogic showed. Indian outbound M&A was $24.8 billion, up from $785 million, led by Bharti Airtels $10.7-billion acquisition of Zain Africa.

The opening up of loan markets after the credit crisis and the surge in confidence of Indian corporates due to more than 25% earnings growth is raising interest in deals.

Also, the assets in developed markets are cheaper as investors fear a double-dip recession or a modest growth for many years due to consumer reluctance to spend.

Reliance Industries , the nations biggest company, which in the past mostly depended on the domestic market, has been aggressive in acquiring shale gas assets in the US which is tipped to be a game changer in the energy economy.

The Mukesh Ambani-led company bought a 40% stake in the US-based Atlas Energy for $1.7 billion in April 2010, besides two other small buys. It held $3 billion in cash as of March 2010.

The globalisation of India and the emergence of Indian businesses as global rather than local, is a key factor that has aided in the surge in M&A activities, says Mr Hancock who was part of the team that advised Tata Steel in its purchase of Anglo-Dutch steelmaker Corus.

Indian companies are sitting on a cash pile of about $75 billion, a study by ET Intelligence Group showed. That gives them an edge in negotiations over their rivals from developed markets which are over leveraged. But India still lags behind China where companies get state-funding to pay over the odds as they seek to ringfence resources to feed the 10% growth.

India ranks 11th in acquirer nation transactions and 10th in inbound M&A deals while China is the third largest acquiring nation with deals worth $131.2 billion, behind the UK.

Confidence is high and equity and debt markets are open to provide capital, says Vikram Malhotra, MD & co-head investment banking, Asia-Pacific, Credit Suisse .

While most deals appear to have taken place on the resources side, more opportunities will come up in other sectors such as consumer, financial and technology.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Integrated Software Solutions Integrated Software Development Integrated Software Services Integrated Software Solutions India Integrated Softw

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions