India M&A race to touch $100 bln mark in 2007: IndusView

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"The acquisition of Hutchison Essar Ltd India's second largest GSM mobile service provider by the U.K.'s Vodafone Group Plc reinforces the reciprocity between Indian and the U.K. companies seeking to unlock the potential in emerging economies on one hand and harnessing the size and scale of global operations on the other as shown by the acquisition of the U.K.'s largest steel maker Corus Group Plc by India's Tata Steel Ltd." said Bundeep Singh Rangar, Chairman of IndusView, the India-focused cross-border advisory firm.

 

India is the second largest investor in the United Kingdom in terms of number of projects, while the U.K. is India's fourth largest trading partner and the fifth largest source of foreign investment into India.

 

"It is thought that bidding wars broke records at Christie's Auction Gallery. It's now getting synonymous to mergers & acquisitions (M&As) involving Indian companies. Just half way through the first quarter of 2007 we already have two largest cross border deals of the country going under the hammer. Acquisition of Hutchison Essar Ltd, by U.K.'s Vodafone Group Plc (inbound) for $19 bln and that of U.K.'s largest steel maker Corus Group Plc by India's Tata Steel Ltd (outbound) for $11 bln." said Rangar

 

"The year 2007 is on track proving to be a year of 'mega deals'. At about $40 billion currently, that is twice the value in the whole of last year and 10 times when compared to the corresponding period. Remarkably, while last year the deals were one of volumes game, 2007 will be more of value driven and is expected to touch the $100 billion mark." said Rishi Sahai, Board Director, IndusView Advisors.

 

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