In the past two years, Indian companies have taken over as many as 143 American companies in various sectors ranging from a small 0.7 to a whopping $1,005 million,says a Federation of Indian Chamber of Commerce and Industry (FICCI) report.
The report, "India Contributes to Employment, Capital Growth and Tax Revenue in the US: Direct Investments by Indian Companies in 2007-09", has been prepared by the prestigious.
The value of the deal was disclosed in 55 cases and stood at a total of $4,432 million.
A large number of jobs in India's textile sector would be lost if GSP for India ends.
Gems and Jewellery sector along with the steel too would be badly hit.
About the general belief in the US that outsourcing has helped India, Singhania said studies have shown that it is actually the US companies who have gained the most out of the outsourcing. "In terms of value, more than 70 to 75 per cent of the benefit goes to US companies."
Both Mitra and Singhania said the FICCI delegation would be presenting the Indian case and impress on the importance of stopping protectionist tendencies.
"Then there is serious issue of taxation and outsourcing. On the one hand we are signing the civilian nuclear agreement, on the other hand there is a serious issue of dual use technology relaxation.,"
"So FICCI is going to convincingly present the case of Indian business that these kinds of measures, weather it is taxation measures for outsourcing, sun setting GSP for India is not right," Mitra said.
The report said the size of the deals was between the range of 0.8 million to $1,005 million.
Next fiscal, 2008-09, Indian companies were involved in acquisition of 49 companies. Of these, deal values were disclosed in 24 cases, which amounted to $960 million. The size of the deal ranged from 0.7 million to $172 million.
The report attributed the rise in Indian outbound investments to the US to strong economic growth, easy availability of debt finance for companies.
In the next year, it dropped by 48 per cent in volume mainly due to volatility in the global market and credit crunch.
Unfavorable exchange rate movements have further increased the cost of overseas acquisitions for Indian multinationals, the report said.
Business Standard
Showing posts with label merger and acquisition. Show all posts
Showing posts with label merger and acquisition. Show all posts
Wednesday, June 24, 2009
Indian companies acquired 143 US firms in two years: Ficci
Several Indian multinationals are looking at acquiring US companies, despite the economic downturn which has raised the cost of overseas acquisitions.
Sunday, June 14, 2009
Taj Group acquires Sea Rock Hotel for Rs 680 crore
Indian Hotels Co, which owns the Taj Group of hotels, has acquired Sea Rock Hotel, one of suburban Mumbai's oldest five-star properties, for Rs 680 crore (USD 143 million).
The Tata-owned Taj Group announced late Friday that it has acquired 85 percent stake in ELEL Hotels and Investments, which owns the property on which Sea Rock Hotel is built in southern Bandra.
With this, the Taj Group boasts of four prime hospitality properties in Mumbai, all facing the Arabian Sea and two with a history of terror attacks - the Taj Mahal Palace and Tower Hotel was attacked Nov 27 last year, while the Sea Rock Hotel was scarred by serial bomb blasts March 12, 1993.
RK Krishna Kumar, vice-chairman of Indian Hotels, said the company would demolish the existing 480-room Sea Rock Hotel and build an integrated complex that will include a hotel, a large convention centre and a retail outlet at an investment of Rs 500 crore.
"We are delighted to announce our plans to construct a world-class convention and hospitality centre here that Mumbai so richly deserves," Kumar said about the proposed complex.
The acquisition also catapults Taj Group's room capacity to 1,425 in its four properties in the city.
Sea Rock Sheraton Hotel was started by the Luthria brothers in 1970s, and had a tie-up with ITC Hotels, but fell into neglect after the 1993 bombings.
It was bought over by the Nandas of the Claridges Hotel chain for Rs.330 crore in 2005. ELEL is a subsidiary of Claridges Hotel.
With the acquisition, the Taj group expects to increase its footprint in north Mumbai as the city will soon see the opening of the Bandra-Worli Sea Link, which will link Bandra with the downtown area through a bridge over the Arabian Sea.
After the sea link opens, the Chhatrapati Shivaji International Airport will be barely 10 minutes' driving distance from the Sea Rock Hotel, and the travel time to south Mumbai will be reduced by almost half.
The Tata-owned Taj Group announced late Friday that it has acquired 85 percent stake in ELEL Hotels and Investments, which owns the property on which Sea Rock Hotel is built in southern Bandra.
With this, the Taj Group boasts of four prime hospitality properties in Mumbai, all facing the Arabian Sea and two with a history of terror attacks - the Taj Mahal Palace and Tower Hotel was attacked Nov 27 last year, while the Sea Rock Hotel was scarred by serial bomb blasts March 12, 1993.
RK Krishna Kumar, vice-chairman of Indian Hotels, said the company would demolish the existing 480-room Sea Rock Hotel and build an integrated complex that will include a hotel, a large convention centre and a retail outlet at an investment of Rs 500 crore.
"We are delighted to announce our plans to construct a world-class convention and hospitality centre here that Mumbai so richly deserves," Kumar said about the proposed complex.
The acquisition also catapults Taj Group's room capacity to 1,425 in its four properties in the city.
Sea Rock Sheraton Hotel was started by the Luthria brothers in 1970s, and had a tie-up with ITC Hotels, but fell into neglect after the 1993 bombings.
It was bought over by the Nandas of the Claridges Hotel chain for Rs.330 crore in 2005. ELEL is a subsidiary of Claridges Hotel.
With the acquisition, the Taj group expects to increase its footprint in north Mumbai as the city will soon see the opening of the Bandra-Worli Sea Link, which will link Bandra with the downtown area through a bridge over the Arabian Sea.
After the sea link opens, the Chhatrapati Shivaji International Airport will be barely 10 minutes' driving distance from the Sea Rock Hotel, and the travel time to south Mumbai will be reduced by almost half.
Monday, May 25, 2009
The 10 largest merger and acquisition deals so far in 2009
Indian cellphone network operator Bharti Airtel Ltd and South Africa's MTN Group said on Monday they had restarted merger talks on a deal that could be worth more than $23 billion, according to Bharti
Below is a list of the top 10 announced merger deals of 2009, according to Thomson Reuters data.
| Target | Acquirer | Size (billion) |
| Wyeth | Pfizer | $64.5 |
| Schering-Plough | Merck | $46 |
| MTN | Bharti | $23 |
| Lloyd's Banking Group | HM Treasury | $22.3 |
| Royal Bank of Scotland | HM Treasury | $18.6 |
| Petro-Canada | Suncor Energy | $18.2 |
| Liberty Entertainment | DirecTV | $14.5 |
| Endesa | Enel | $14.2 |
| Essent | RWE AG | $12.4 |
| Nuon | Vattenfall | $10.9 |
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