MERGERS & ACQUISITIONS
ANKITA S. SHAH
REGISTRATION NO. WRS/051285
ENROLLMENT NO. ORAL/SC/FINAL/162
This is to certify that following student of ICWAI-Western Region
Ankita S. Shah
Registration No. WRS/051285
Enrollment No. Oral/SC/Final/162
Has prepared dissertation titled
Mergers & Acquisitions
As part of the project work in partial fulfillment of requirements for
Final group of CWA course as prescribed by
Institute of Cost & Works Accountants of India.
Mergers & Acquisitions
Table of Contents
▪ Introduction 4
▪ Definitions ...view middle of the document...
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, and particularly in the US, is not only an indication of the maturity reached by Indian Industry but also the extent of their participation in the overall globalization process.
Here are the top 10 acquisitions made by Indian companies worldwide:
|Acquirer |Target Company |Country targeted |Deal value ($ ml) |Industry |
|Tata Steel |Corus Group plc |UK |12,000 |Steel |
|Hindalco |Novelis |Canada |5,982 |Steel |
|Videocon |Daewoo Electronics Corp. |Korea |729 |Electronics |
|Dr. Reddy’s Labs |Betapharm |Germany |597 |Pharmaceutical |
|Suzlon Energy |Hansen Group |Belgium |565 |Energy |
|HPCL |Kenya Petroleum Refinery |Kenya |500 |Oil and Gas |
| |Ltd. | | | |
|Ranbaxy Labs |Terapia SA |Romania |324 |Pharmaceutical |
|Tata Steel |Natsteel |Singapore |293 |Steel |
|Videocon |Thomson SA |France |290 |Electronics |
|VSNL |Teleglobe |Canada |239 |Telecom |
If you calculate top 10 deals itself account for nearly US $ 21,500 million. This is more than double the amount involved in US companies’ acquisition of Indian counterparts.
Graphical representation of Indian outbound deals since 2000.
Indian outbound deals, which were valued at US$ 0.7 billion in 2000-01, increased to US$ 4.3 billion in 2005, and further crossed US$ 15 billion-mark in 2006. In fact, 2006 will be remembered in India’s corporate history as a year when Indian companies covered a lot of new ground. They went shopping across the globe and acquired a number of strategically significant companies. This comprised 60 per cent of the total mergers and acquisitions (M&A) activity in India in 2006. And almost 99 per cent of acquisitions were made with cash payments.
Sure, an M&A deal often grabs headlines. Deals can be worth hundreds of millions, or even...