Unilever-HUL deal largest Indian inbound M&A on record

Unilever Plc's USD 5.4 billion bid for a 23-percent stake in Hindustan Unilever is the largest Asia Pacific cross border inbound merger and acquisition (M&A) deal so far this year and is the fifth largest India Inbound M&A transaction on record till date.

According to global deal tracking firm Dealogic, Unilever is the the fifth largest India Inbound M&A transaction on record, the largest being, Vodafone's 67 percent stake acquisition in the Hutchison-Essar Ltd (HEL) from Hong Kong-based Hutchison Group in 2007.

Also read: Offer of Rs 600/shr for HUL fair; won't raise it: Unilever

Moreover, the Unilever deal is the second largest Asia (ex-Japan) targeted transaction in 2013, behind CP All plc's USD 6.6-billion takeover bid for Siam Makro pcl, announced on April 23.

On April 30, Anglo-Dutch consumer goods giant Unilever Plc will spend USD 5.4 billion (over Rs 29,380 crore) to hike stake in its Indian arm Hindustan Unilever to 75 percent through an open offer.

Unilever will pay Rs 600 a share in an open offer to raise its stake in Hindustan Unilever to 75 percent from the current 52.48 percent.

Some of the major inbound deals wherein a foreign company or its subsidiary had acquired an Indian entity in the past, includes BP's USD 9 billion acquisition of Reliance Industries' oil & gas assets and the acquisition of Cairn India by NRI billionaire Anil Agarwal led-Vedanta Resources for over USD 8 billion.

The United Kingdom has been one of the top acquirers of Indian assets over the years as another most prominent inbound deal also involved a UK entity Vodafone Group.

Other key inbound transactions include Japanese drug major Daiichi Sankyo Company's acquisition of majority stake in Ranbaxy Laboratories Ltd for up to USD 4.6 billion and US-based Abbott's acquisition of Piramal Healthcare's domestic formulation business for USD 3.72 billion.