Canada, Scotland are new M&A hunting grounds for Indian firms

Canada, Scotland are new M&A hunting grounds for Indian firms

The mergers and acquisitions (M&A) drive of Indian companies is no more restricted to the US and the UK alone as local firms make their way to newer offshore horizons such as Scotland, Canada and Singapore.

According to data compiled by global consultancy firm Grant Thornton International, the volume of M&A deals made by Indian companies in countries such as Brazil, Scotland, the Netherlands and Canada is greater than that in the UK.

The value of the nine deals in the UK clinched by Indian firms so far this year, stands at just $58.50 million (about Rs230 crore), while Indian companies acquired four companies in Canada for a total of $166.70 million, made one deal in Scotland for $80 million and another in Brazil for more than $33 million.

Indian companies have also spread their wings to Singapore with six deals worth $154.88 million this year and in the Netherlands with three deals for $28 million.

However, the US remained the favourite destination for Indian companies in this period year with 35 deals worth $1,586.38 million in the January-October period this year.

Hero Group acquired Scotland-based Telecom Service Centres (TSC) for $80 million, Subex Azure Ltd had acquired Canadian Syndesis Ltd for $164.50 million and Teledata Infomatics Ltd had made a deal worth $45 million with Singapore-based Soltius Pte Ltd. The largest proportion of outbound deals was made in North America, which contributed close to 83% of all outbound deals.

In terms of country-based contribution, the US alone accounted for about 75% of all outbound deals, followed by Canada and Singapore at 7.90% and 7.34%, respectively, the Grant Thornton report said. In the first 10 months of 2007, there were 305 cross-border deals valued at about $47.18 billion.

The outbound deals have grown to a whopping $31.70 billion this year so far, from $9.9 billion in 2006. Domestic deals have grown in volume to 275 this year, from 214 in 2006.