Top 10 Indian Mergers & Acquisitions of 2010! India Inc.

is back making multibillion dollar deals like never before. The total deal value this year has surpassed 2007 which was the big ticket year for mergers and acquisitions. The recession and economic slowdown had caused a lot of heartburn, disappointment and distress among the corporate honchos in the country. But with deals crossing US $55 billion this year, the smiles are back on the faces of the big guns. Along with hunting for organizations at bargains, the deals also involve going for loss making companies in developed countries to turn them around. Value buys became the order of the day. Though a number of acquisitions were in the developed world like Singapore, Australia, Europe etc, many of them happened in the developing world as well. And then there were some which happened in India as well! Top 10 Mergers & Acquisitions in India for 2010 Tata Chemicals buys British salt Tata Chemicals bought British Salt, a UK based white salt producing company for about US $ 13 billion. The acquisition gives Tata access to very strong brine supplies and also access to British Salts facilities as it produces about 800,000 tons of pure white salt every year Reliance Power and Reliance Natural Resources merger This deal was valued at US $11 billion and turned out to be one of the biggest deals of the year. It eased out the path for Reliance power to get natural gas for its power projects Airtels acquisition of Zain in Africa Airtel acquired Zain at about US $ 10.7 billion to become the third biggest telecom major in the world. Since Zain is one of the biggest players in Africa covering over 15 countries, Airtels acquisition gave it the opportunity to establish its base in one of the most important markets in the coming decade Abbotts acquisition of Piramal healthcare solutions Abbott acquired Piramal healthcare solutions at US $ 3.72 billion which was 9 times its sales. Though the valuation of this deal made Piramals take this move, Abbott benefited greatly by moving to leadership position in the Indian market GTL Infrastructure acquisition of Aircel towers This acquisition was worth about US $ 1.8 billion and brought GTL Infrastructure to the third position in terms of number of mobile towers 33000. The money generated gave Aircel the funds for expansion throughout the country and also for rolling out its 3G services ICICI Bank buys Bank of Rajasthan This merger between the two for a price of Rs 3000 cr would help ICICI improve its market share in northern as well as western India JSW and Ispat Ki Kahani Jindal Steel Works acquired 41% stake at Rs 2,157 cr in Ispat Industries to make it the largest steel producer in the country. This move would also help Ispat return to profitability with time Reckitt Benckiser goes shopping

Reckitt acquired Paras Pharma at a price of US $ 726 million to basically strengthen its healthcare business in the country. This was Reckitts move to establish itself as a strong consumer healthcare player in the fast growing Indian market Mahindra goes international Mahindra acquired a 70% controlling stake in troubled South Korea auto major Ssang Yong at US $ 463 million. Along with the edge it would give Mahindra in terms of the R & D capabilities, this deal would also help them utilise the 98 country strong dealer network of Ssang Yong Fortis Healthcare acquisitions Fortis Healthcare, the unlisted company owned by Malvinder and Shivinder Singh looks set to make it two in two in terms of acquisitions. After acquiring Hong Kongs Quality Healthcare Asia Ltd for around Rs 882 cr last month, they are planning on acquiring Dental Corp, the largest dental services provider in Australia at Rs 450 cr As you see in the list, the M & As have happened across industries and sectors like banking, automotive, healthcare, FMCG, telecom etc. This shows that this really has been the dream year of Indian industry.

op 10 Outbound Merger and Acquisitions(M&A) deals in India All time.

India had very less cases of Merger and Acquisitions(M&A)earlier. But in past four years, things have changed and there is an very increase in Outbound Merger and Acquisitions(M&A). Outbound M&A means, the Companies which has origin in Indiaand making and initiative in investments in the foreign based companies. A major landmark was booked by the Tata Steel Limited by acquiring the UKbased company, Corus Group in 2007 for a whopping amount of $12.2 Billion. Due to the Global financial crisis the Inbound Merger and Acquisitions(M&A) was dropped by approximately 85%, which is said to be Increases in the coming years to an great extent. The Indian entrepreneurs are on spree in Merger and Acquisitions(M&A) both for outbound as well as attracting the Inbound M&A, which looks to be an good sign for an Economy boom.

Acquirer Company

Targeted Company

Tata Steel Hindalco

Corus (UK) Novelis Inc (USA)

Industry Deal Value (In Billions) $12.2 Steel $6 Aluminium

Industries Oil & Natural Gas Corp(ONGC) Videsh Ltd Tata Motors Ltd Suzlon Energy Ltd Essar Steel Holdings Limited United Spirits Tata Power Imperial Energy PLC (UK) $2.8 Oil & Gas

Jaguar & Land $2.3 Rover Operations (UK) RE Power $1.7 (Germany) Algoma Steel $1.58 Inc (Canada) Whyte & Mackay (UK) $1.11

Automotive Power & Energy Steel

Breweries & Distilleries Power & Energy

GMR Infrastructure Ltd Tata Chemicals Limited

PT Kaltim Prima Coal; $1.10 PT ArutminIndonesia (30% Stake -Indonesia) InterGen NV (50% $ 1,10 Stake Netherlands ) General Chemical (USA) $1

Power & Energy Plastic & Chemicals

Mergers and acquisitions in India are on the rise. Volume of mergers and acquisitions in India in 2007 are expected to grow two fold from 2006 and four times compared to 2005. India has emerged as one of the top countries with respect to merger and acquisition deals. In 2007, the first two months alone accounted for merger and acquisition deals worth $40 billion in India. The estimated figures for the entire year projected a total of more than $ 100 billions worth of mergers and acquisitions in India. This is two fold growth from 2006 and a growth of almost four times from 2005.

Mergers and Acquisitions in different sectors in India

Sector wise, large volumes of mergers and mergers and acquisitions in India have occurred in finance, telecom, FMCG, construction materials, automotives and metals. In 2005 finance topped the list with 20% of total value of

mergers and acquisitions in India taking place in this sector. Telecom accounted for 16%, while FMCG and construction materials accounted for 13% and 10% respectively. In the banking sector, important mergers and acquisitions in India in recent years include the merger between IDBI (Industrial Development bank of India) and its own subsidiary IDBI Bank. The deal was worth $ 174.6 million (Rs. 7.6 billion in Indian currency). Another important merger was that between Centurion Bank and Bank of Punjab. Worth $82.1 million (Rs. 3.6 billion in Indian currency), this merger led to the creation of the Centurion Bank of Punjab with 235 branches in different regions of India. In the telecom sector, an increase of stakes by SingTel from 26.96 % to 32.8 % in Bharti Telecom was worth $252 million (Rs. 10.9 billion in Indian currency). In the Foods and FMCG sector a controlling stake of Shaw Wallace and Company was acquired by United Breweries Group owned by Vijay Mallya. This deal was worth $371.6 million (Rs. 16.2 billion in Indian currency). Another important one in this sector, worth $48.2 million (Rs 2.1 billion in Indian currency) was the acquisition of 90% stake in Williamson Tea Assam by McLeod Russell India In construction materials 67 % stake in Ambuja Cement India Ltd was acquired by Holcim, a Swiss company for $634.9 million (Rs 27.3 billion in Indian currency).