New Delhi: Tatas led the global M&A ambitions of India Inc as the home grown entities acquired companies abroad with a war chest of $11.37 billion in the first quarter of 2007-08, an Assocham Eco Pulse Study (AEP) said.
The foreign firms invested much less at $2.06 billion in buying out Indian firms during the period.
The Indian firms also stayed ahead of foreign companies in acquiring entities based and operating in the country. As against $2.06 billion buy outs by foreign firms in India, the domestic companies made $2.63 billion purchases, as per the AEP Study on Mergers and Acquisitions in First Quarter 2007-08.
“It goes to the credit of Indian entrepreneurs for reaching out to the world in a much bigger way than the overseas firms’ desire to acquire business in India,” Assocham President Venugopal Dhoot said.
The Tata Group carried out buy-outs to the extent of $5.35 billion at domestic and international level during first three months of the current financial year. Of this, $4.53 billion were spent on global acquisitions, while $60 million were used for domestic consolidation activity.
Tata Power took over Indonesia based PT Kaltim Prima Coal and PT Arutim Indonesia for $1.1 billion. Indian Hotels Company Ltd acquired Hotel Campton Palace for $60 million.
Tata Steel entered into a joint venture with Vietnam Steel for having a 65 per cent stake for $2.1 billion.
Essar Global has made second largest acquisitions of $1.665 billion in steel sector during the period tracked by AEP. It announced takeover of Algoma Steel based in Canada for $1,580 million and Minnesota Steel for $85 million.
United Breweries Group has taken up mergers and acquisitions worth $1.3 billion within a time frame of three months in the aviation (domestic) and liquor (abroad) industry. It took over Whyte and Mackay based in United Kingdom for $1.16 billion.
The United States was the most favoured destination of the Indian global hunters. Deals amounting to $3 billion were accomplished by the Indian corporates. Acquisition worth $1.58 billion were made in Canada, making the North American region at $4.58 billion priced deals - the most sought after.
Asia-Pacific was the second most preferred territory as acquisitions valuing at $3.8 billion took place in the first quarter. Vietnam, Indonesia, Israel and Singapore were among the other favoured places as deals worth $2.1 billion, $1.1 billion, $0.45 billion and $0.15 billion were undertaken.
Acquisition deals in Europe were valued at $2.89 billion, third largest after North America and Asia-Pacific. Within the European region, maximum mergers worth $1.52 billion was undertaken by Indian companies in Germany. United Kingdom was second to Germany followed by Italy and Poland.