U.S. acquirers are looking to tap the emerging Indian market in a number of sectors, including telecom, automotive and pharma, as we've
recently reported. But are deals flowing in the opposite direction? According to Virtus Global Partners, the answer is yes. Virtus just presented CD with its half-yearly report on U.S.-bound acquisitions from India. Here are some highlight:
- There were three deals over $1 billion in the first six months of 2008, compared to one in all of 2007. This year's megadeals were Tata Chemicals
acquisition of General Chemicals Co. for $1 billion,
GMR Energy Ltd.'s purchase of 50% equity in InterGen
for $1.1 billion and Sterlite Industries (India) Ltd. announced
bid for Asarco LLC valued at $2.6 billion.
- There were no transactions
in the $100 million to $1 billion
range. This reflects the trend of well-capitalized large Indian
companies building scale by buying up value assets and midsized taking a more cautious approach to deals.
- With 17 U.S.-bound acquisitions in the first six
months of 2008, information technology is the
most acquisitive industry in India.
The report also notes that increasing competitive pressures, emerging global
opportunities and the decline in overseas trade and
investment barriers are encouraging Indian
companies to seek acquisitions in the U.S.
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Baz HiralalU.S.-bound Acquisitions by Indian companies in the first half of 2008Indian IT cos still look at U.S. buys
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