Mergers and Acquisitions in India

Mergers and acquisitions in India
are on the rise. Volume of mergers and acquisitions in India in 2007 are expected to grow two fold from 2006 and four times compared to 2005.India has emerged as one of the top countries with respect to merger and acquisition deals. In 2007, the first two months alone accounted for merger and acquisition deals worth $40 billion in India. The estimated figures for the entire year projected a total of more than $ 100 billions worth of mergers and acquisitions in India. This is two fold growth from 2006 and a growth of almost four times from 2005.

Mergers and Acquisitions in different sectors in India

Sector wise, large volumes of mergers and mergers and acquisitions in India have occurred in finance, telecom, FMCG, construction materials, automotives and metals. In 2005 finance topped the list with 20% of total value of mergers and acquisitions in India taking place in this sector. Telecom accounted for 16%, while FMCG and construction materials accounted for 13% and 10% respectively.

In the banking sector, important mergers and acquisitions in India in recent years include the merger between IDBI (Industrial Development bank of India) and its own subsidiary IDBI Bank. The deal was worth $ 174.6 million (Rs. 7.6 billion in Indian currency). Another important merger was that between Centurion Bank and Bank of Punjab. Worth $82.1 million (Rs. 3.6 billion in Indian currency), this merger led to the creation of the Centurion Bank of Punjab with 235 branches in different regions of India.

In the telecom sector, an increase of stakes by SingTel from 26.96 % to 32.8 % in Bharti Telecom was worth $252 million (Rs. 10.9 billion in Indian currency). In the Foods and FMCG sector a controlling stake of Shaw Wallace and Company was acquired by United Breweries Group owned by Vijay Mallya. This deal was worth $371.6 million (Rs. 16.2 billion in Indian currency). Another important one in this sector, worth $48.2 million (Rs 2.1 billion in Indian currency) was the acquisition of 90% stake in Williamson Tea Assam by McLeod Russell India In construction materials 67 % stake in Ambuja Cement India Ltd was acquired by Holcim, a Swiss company for $634.9 million (Rs 27.3 billion in Indian currency).

 

Top listed merger and acquisition in India in 2014 :
1. Flipkart- Myntra

Bangalore based domestic e-retailer Flipkart acquired the online fashion portal Myntra for an undisclosed amount in May 2014

2. Asian Paints- Ess Ess Bathroom Products

Asian paints signed a deal with Ess Ess Bathroom products Pvt Ltd to acquire its front end sales business.

3. RIL- Network 18 Media and Investments

Reliance Industries Limited (RIL) took over 78% shares in Network for Rs 4,000 crores.
4. Merck- Sigma Deal

Merck KGaA took over US based Sigma-Aldrich Company for $17 billion in cash

5. Ranbaxy- Sun Pharmaceuticals

Ranbaxy shareholders will get 4 shares of Sun Pharma for every 5 Ranbaxy shares held by them. The deal, worth $4 billion
6. TCS- CMC

Tata Consultancy Services (TCS) has announced a merger with the listed CMC
7. Tata Power- PT Arutmin Indonesia

Tata Power, purchased 30% stake in Indonesian coal manufacturing firm for Rs 47.4 billion
8. Tirumala Milk – Lactalis

Lactalis acquired Tirumala Milk products for Rs 1750 crore
9. Aditya Birla Minacs- CSP CX

ABNL IT & ITeS Ltd. was sold to a Canadian based technology outsourcing firm CSP CX.
10. Sterling India Resorts- Thomas Cook India

Thomas Cook India bought the Sterling Resorts India for Rs 870 crores.
11. Yahoo- Bookpad

Yahoo, acquired the one year old Bangalore based startup Bookpad for a little under $15 million, though the amount is not disclosed.

Mergers and Acquisitions in India in 2007

Some of the important mergers and takeovers in India in 2007 were –
Mahindra and Mahindra acquired 90% stake in the German company Schoneweiss.
Corus was taken over by Tata
RSM Ambit based at Mumbai was acquired by PricewaterhouseCoopers.
Vodafone took over Hutchison-Essar in India.

 

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Last Updated on : 29th July 2013