Reinforcing the growing clout presence of Indian corporates in the international market, an analysis of deals between emerging and developed economies since 2003 by KPMG, showed that there were 322 completed deals where Indian buyers have acquired companies in the major developed economies. This, compared to 340 deals completed in the opposite direction, where developed economy entities bought into India, as per the study by Emerging Markets International Acquisition Tracker (EMIAT).
India is also far ahead of other BRIC economies in terms of becoming a net exporter of deals. Within EMIAT, in volume terms, the country’s outbound deals now equate to 95% of their inbound total. By comparison, Russia boasts a 30% figure, while China and Brazil lag behind at 12% and 9 % respectively.
High-profile buyouts such as Indian conglomerate Tata's acquisition of Jaguar-Land Rover and mega-merger with Corus are just the tip of the iceberg. Many of the deals clocked by KPMG are relatively small; the average value may be just $50 mn, once the huge players such as Tata and drug giant Ranbaxy are excluded. Takeover targets have also been diverse, from Whyte and Mackay whisky, bought by United Breweries last year, to London's oldest stockbroker ‘Hichens, Harrison & Co’ bought by Religare Enterprises.
Meanwhile in first half of 2008, the EMIAT study shows that, 51 Indian companies closed deals in developed countries, while Russian companies bought 11 firms and South Korean companies closed 8 deals. For India, the outbound deals (51) outpaced inbound deals (17) in the first half of this year. And, going by the trend, this country is surely on its way to become to a net “deal exporter” by next year.
India is also far ahead of other BRIC economies in terms of becoming a net exporter of deals. Within EMIAT, in volume terms, the country’s outbound deals now equate to 95% of their inbound total. By comparison, Russia boasts a 30% figure, while China and Brazil lag behind at 12% and 9 % respectively.
High-profile buyouts such as Indian conglomerate Tata's acquisition of Jaguar-Land Rover and mega-merger with Corus are just the tip of the iceberg. Many of the deals clocked by KPMG are relatively small; the average value may be just $50 mn, once the huge players such as Tata and drug giant Ranbaxy are excluded. Takeover targets have also been diverse, from Whyte and Mackay whisky, bought by United Breweries last year, to London's oldest stockbroker ‘Hichens, Harrison & Co’ bought by Religare Enterprises.
Meanwhile in first half of 2008, the EMIAT study shows that, 51 Indian companies closed deals in developed countries, while Russian companies bought 11 firms and South Korean companies closed 8 deals. For India, the outbound deals (51) outpaced inbound deals (17) in the first half of this year. And, going by the trend, this country is surely on its way to become to a net “deal exporter” by next year.
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