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: VAT Audit :: cpt :: list of goods taxed at 4% :: TAX RATES - GOODS TAXABLE @ 4% :: articles on VAT and GST in India :: form 3cd :: ARTICLES ON INPUT TAX CREDIT IN VAT :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: TDS :: VAT RATES :: ACCOUNTING STANDARDS :: empanelment :: Central Excise rule to resale the machines to a new company :: due date for vat payment :: 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

Russian-Indian M&A pact aims at bulge bracket
December, 15th 2009

A Kazakh resources company wants to buy African mining assets. Where does it go for advice - London, New York or Hong Kong? 

None of the above, if Hasnen Varawalla has his way.

Varawalla is head of corporate finance at Renaissance Capital, Russia's biggest home-grown investment bank, which has forged an exclusive co-operation agreement for cross-border mergers and acquisitions with Kotak Investment Banking, a unit of Kotak Mahindra Bank.

The alliance, unveiled in Mumbai on Tuesday, aims to use Renaissance's franchise in Russia, the former Soviet Union and Africa and Kotak's Indian experience to help big companies from those countries buy into each other's markets.

"It's an idea whose time has come," said Varawalla, who left Credit Suisse to join Renaissance in Moscow three years ago, adding the alliance will rival global "bulge bracket" investment banks, who already have a strong presence in the same markets.

Citing a string of recent deals, such as Russian conglomerate Sistema's purchase of Indian telecom player Shyam, Gazprom's oil well development in the Bay of Bengal or Indian player ONGC's takeover of Imperial Energy for its Russian and Kazakh energy assets, Varawalla says the hunger by big developing world companies to buy into each other's markets is growing.

"Companies from this part of the world specialise in low-cost business models," he explains. "They know how to run things on a shoestring. For expansion into Africa, companies from the emerging world are that much stronger."

And the old model whereby acquisitive and ambitious emerging market companies automatically looked only to big Western banks for help is already history, he says.

Multinational banks are "less and less the only source of cross-border investment and M&A within emerging markets", he said.

"Increasingly this flow is between emerging markets," he said adding the Renaissance-Kotak combination will appeal because clients will appreciate what he says is the local players' deeper knowledge of their markets and better coordination.

Varawalla believes that resources are the most obvious sector for such cross-emerging market deals "but by no means the only one".

He suggests telecommunications, the defence industry, construction, IT outsourcing, infrastructure and the banking sector as other promising areas for Indian, Russian and African players to seek assets and tie-ups.

"Indian financial companies have been active in Africa for the last 60 or 70 years," he said. "There is now an opportunity for them to grow and expand."

In the resources sector, Indian companies have some catching up to do in Africa, where Varawalla says they are well behind the Chinese, who have announced deals valued at $20 billion in the continent in the last 12-18 months.

No equity is changing hands for the co-operation deal between Renaissance and Kotak and fees will be split in proportion to their contributions to transactions they make.

Varawalla declined to specify targets for how much business the venture, which has no dedicated employees, is meant to bring in during its first years.

Wearing his corporate finance hat, he also sees a wave of new equity offerings from the markets Renaissance serves over the next year as the global appetite for risk returns.

"A lot of companies who had plans on hold will come to market next year," he said. "I suspect 2010 will be a strong year."

Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Achievements

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