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51.11
deals in the Indian market and it is indeed 40.00 28.16
a matter of pride to be a part of the 18.35
unprecedented M&A growth era of India 20.00 16.32 20.30 19.03
Inc. We would like to take this opportunity - 2.03 7.86
to thank our readers for the excellent 2005 2006 2007
response, support and encouragement
extended. We are happy to publish the M&A PE All Deals
Third Annual Issue of Dealtracker covering
the year 2007. was $70.14 billion as against $28.16 •The value of Cross Border deals (both
billion in 2006 and $18.35 billion in 2005. Inbound and Outbound) announced in
Globally M&A deals worth $4.48 trillion The average Indian M&A deal size was 2007 has almost tripled from 2006. The
were announced during 2007 as against $75.61 Mn, while the average Indian PE value of inbound deals increased from
$3.61 trillion during 2006, i.e. a growth of deal size was $ 47 Mn during 2007. We $5.1 billion in 2005 to $ 5.4 billion in 2006
24%. The year 2007 has seen very have summarised the trend of M&A and to $15.5 billion this year and value of
significant deals in India in both Private PE deals during 2007 and presented a outbound deals increased from $4.3 billion
Equity (PE) and Mergers and Acquisitions synopsis of top deals and sectoral in 2005 to $9.9 billion in 2006 to $32.8
(M&A). Over this year, India Inc has not performances over the year. billion in 2007. Tata-Corus, Vodafone-
only been an important destination for Hutch and Hindalco-Novelis deals
International Private Equity funding and 1.1 Key Highlights – 2007 accounted for 56.80% of total M&A deals
Inbound M&A’s but also has been highly •There were more than 1,000 deals in during 2007.
active in acquiring International 2007 (M&A and PE together), as •The value of domestic deals announced
companies, thus expanding its global compared to 782 in 2006 and 467 deals in has declined from $ 6.9 billion in 2005 to $
foothold. The year 2007 has witnessed a 2005. 4.99 billion in 2006 to $ 2.85 billion in
number of multi billion dollar deals for the •There were 13 M&A deals with deal value 2007, even though the volume of domestic
first time in the history of Corporate India. of over $500 Mn in 2007 as compared to 8 deals has increased from 151 deals in
The total value of deals (M&A and PE) deals and 7 deals in 2006 and 2005 2005 to 214 deals in 2006 to 321 deals in
announced in the calendar year 2007 respectively. 2007.
•Though volume of M&A deals
Value (in million USD) Volume
Table 1 2007 2006 2005 2007 2006 2005 has grown by 40.83% during
Inbound 15,500.95 5,399.75 5,173.93 112 76 56 2007 as compared to 2006,
Outbound 32,759.04 9,914.15 4,298.52 243 190 136 value of M&A deals has grown
Steel and Telecom sectors were the clear FMCG, Food & Beverages Electricals & Electronics
leaders as far as sectoral values were 1% 1%
2.2 Multi Billion dollar M&A deals 2.3 Quarterly break-up of M&A deals North America (38% of deal value). In
There were 7 “billion dollar” M&A deals in Jan-Mar quarter witnessed the largest terms of Volume, Indian companies
2007 compared to none in 2006. India Inc proportion of M&A’s in 2007 with $33.85 acquired more firms in North America (95
also witnessed a lesser number of low billion worth of deals – accounting for deals) than in Europe (84 deals).
value deals as compared to previous 66.22% of total M&A deals during 2007. •Interestingly, of the $15.5 billion worth of
years. The deals for which value was not As can be seen in table 4 below, both inbound deals in 2007, European firms
disclosed were typically small sized deals. Domestic and cross border deals declined M&A’s in India stand at $13.84 billion
The largest deals of 2007 were Tata- (value & volume) during Oct-Dec quarter (accounting for 89.27% of all inbound
Corus and Vodafone-Hutch deals which compared to their previous quarters. The deals).
were completed in early 2007 – making it graphs below present the quarterly •In terms of inbound deal volume, Europe
the perfect start for a year of M&A movement of Cross-Border Deals (by and North America formed 75.89% of total
transactions. Of the 7 “billion dollar” value & volume) for European and North- inbound deal volume. USA and UK were
deals, 3 deals were in the metal sector, 2 American regions. the most active cross border destinations
deals in Power & Energy and 1 deal each for India Inc over 2007.
in Telecom and Breweries & Distilleries 2.4 Cross Border Deal Analysis
sectors. Together, these 7 “billion dollar” Cross border deals increased significantly
deals accounted for 67.47% of total M&A from 2006. There were 355 cross border
during 2007. A list of M&A deals with deal deals worth US $ 48.26 bn this year as
value of $ 1 Billion+ are listed in Table 3. against 266 deals worth US $ 15.3 bn in
2006.There has been a phenomenal
Volume of deals
80
Value in US $ bn
Value in US $ bn
14 70
10 70
12 60
60
8
10 50
50
8 40 6
40
6 30 4 30
4 20 20
2
2 10 10
- 0
- 0
Jan Feb Mar Ap r May Jun Jul Aug Sep Oct Nov Dec
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
100 18
5 250
Volume
80 241
4 200 216
60 1
150 0
3
8
40 100
2
81 103
20 50 57
1 12
0
- - 2007 2006 2005
Jan - Mar Apr - Jun Jul - Sep Oct - Dec
Value not disclosed < $49.9 m $50m - $99.9m $100m - $499.9m > 500 m
Value Volum e
hotels, racing teams, steel mills, textiles,
The Real Estate & Infrastructure 3.2 Quarterly performance: metals, entertainment etc
Management sector has witnessed PE investment in India witnessed an
continuous growth over the past two upward trend based on quarterly analysis. The new and heightened deal activity is a
years. The number of investments in this Oct – Dec quarter witnessed the largest sign of M&A becoming a key element of
sector has more than doubled in 2007 as share of PE investment in 2007 with 120 strategy for India Inc. There is strong
compared to 2006. In terms of proportion deals and an announced value of $7.29 growth in cross border deals, as India Inc
of total PE investments, Real Estate and billion. The value of investment in Jan – is going with gusto across the world
Infrastructure Management sector formed Mar quarter was comparatively lower at buying up companies. This is different
6.3% in 2006 and 35.54% in 2007. $2.98 billion and, even though the number from the state led acquisitions that China
of deals were as high as 112. Inc is doing where the deals are big,
The initiative taken by the Government of strategic for China and comes with a
India towards liberalizing the regulations significant element of push and support
relating to foreign direct investment in 3.3 PE Investment trend 2005 – 2007: from the Government. India Inc is going
construction and realty projects, and The year 2007 saw bigger investments about international acquisitions on its own
creation of more Special Economic Zones, than previous years. There were 6 deals steam. Increasing corporate capex,
© Grant Thornton India 2008
investment in public infrastructure and
fiscal stimuli will provide the impetus to Tax and Regulatory Services
further drive the M&A engine for India Inc. - Indian Tax Compliance & Advisory
The attractive profit margins of Indian - International Taxation and Transfer
Corporates will only attract more private Pricing
equity and the “India Shining” story is - Inbound and Outbound Investment
expected to continue. We expect PE
houses to focus more on sectors such as Corporate Advisory Services
Real Estate and Infrastructure - Due diligence
Management, Retail, Aviation, Telecom - Mergers and Acquisition lead advisory
and NBFCs. The juggernaut is expected - Valuations
to roll on in 2008… - Project Finance
- Distressed Assets Advisory
ABOUT GRANT THORNTON PRIMA Consultancy
Grant Thornton India is the Indian member
firm of Grant Thornton International, the For feedback / query please email on:
fifth largest accountancy firm network in contact@gt-india.com
the world, with over 600 offices in over
110 countries and employing more than
22,000 people.
I. Domestic Deals
Acquisition
price in US
Acquirer Target Sector $ Mn Deal Type % Stake
Jamna Auto Jai Parabolic
Industries Springs Automotive N.A. Merger N.A.
Unlisted company
Tilaknagar located in the state Breweries &
Industries of Karnataka Distilleries N.A. Majority stake N.A.
Indian Hotels'
subsidiary Residency
Foods and Innovative Foods FMCG, Food &
Beverages Limited Limited Beverages N.A. Majority Stake 70.00%
Dabur India Dabur Foods FMCG, Food &
Limited (DIL) Limited (DFL) Beverages N.A. Merger N.A.
Dhunseri Tea & Tezpore Tea FMCG, Food &
Industries Limited Company Limited Beverages N.A. Merger N.A.
Wadhawan Food
Retail Pvt Ltd FMCG, Food &
(WFRL) S mart Beverages N.A. Majority Stake 76.00%
FMCG, Food &
Heritage Foods Vikram Dairy Beverages N.A. Acquisition
FMCG, Food &
Dollex Industries Kalamber SSK Beverages 3.26 Acquisition
Moran Tea Increasing
McLeod Russel Company (India) FMCG, Food & stake to
India Limited Limited Beverages N.A. 86.69% 72.38%
Everfresh ( From
Chambal
Temptation Foods Fertilisers and FMCG, Food &
Ltd Chemicals ) Beverages N.A. Acquisition
Advanced Oral
Colgate Palmolive Care Products Pvt. FMCG, Food &
India Ltd Ltd Beverages N.A. Majority Stake 75.00%
Professional Oral
Colgate Palmolive Care Products Pvt. FMCG, Food &
India Ltd Ltd. Beverages N.A. Majority Stake 75.00%
Colgate Palmolive SS Oral Hygiene FMCG, Food &
India Ltd Products Pvt. Ltd. Beverages N.A. Majority Stake 75.00%
Kwality Resorts
GL Hotels Limited and Hospitality Hospitality N.A. Acquisition
Mayfair Banquets
Private Limited
GL Hotels (MBPL) Hospitality N.A. Merger N.A.
Concept
Kamat Hotels Hospitality Hospitality N.A. Majority Stake 60.00%
BT Telecom India i2i enterprises IT & ITeS N.A. Acquisition
Sobha Renaissance
Information
Technology Infotrack IT & ITeS N.A. Acquisition
Sobha Renaissance
Information
Technology Zipdrive IT & ITeS N.A. Acquisition
Khemkas of Sun Firstsource
Group Solutions IT & ITeS 40.00 Minority stake 9.00%
Citigroup-owned
Internet service
provider, YOU
Telecom IceNet IT & ITeS N.A. Acquisition
Fabmall.com Indiaplaza.com IT & ITeS N.A. Acquisition
iPolicy Networks
Tech Mahindra India IT & ITeS N.A. Acquisition
Satyam Computer
Services Limited Nipuna IT & ITeS 40.00 Merger N.A.
Banking solutions
Accel Frontline division of Telesis
Limited Global Solutions IT & ITeS N.A. Acquisition
Cranes Software
International Tilak Autotech
Limited Private. Limited IT & ITeS 2.22 Acquisition
ArchPro Design
Automation
Synopsys Technologies IT & ITeS N.A. Acquisition
Cranes Software
International Proland Systems
Limited Private Limited IT & ITeS 4.65 Acquisition
SPS Steel & Power Suraj Fabrics Ltd Metals & Ores 9.30 Acquisition
Exide Industries Tandon Metals
Limited Private Limited Metals & Ores N.A. Acquisition
Nilachal Iron &
Jai Balaji Industries Power Ltd (NIPL) Metals & Ores 16.74 Acquisition
India NRE
Minerals Limited
(an Australian
subsidiary of
Gujarat NRE Coke Gujarat NRE
Limited Coke Limited) Metals & Ores N.A. Merger N.A.
Reliance Industries
Limited IPCL Oil & Gas N.A. Merger N.A.
Andhra Increasing
Andhra Sugars Petrochemicals stake to
Limited (ASL) Limited (APL) Oil & Gas N.A. 26.37% 0.20%
Goa Carbon Paradeep Carbons
Limited (GCL) Limited Oil & Gas N.A. Merger N.A.
Indian Oil IBP’s petroleum
Corporation retail business Oil & Gas N.A. Merger N.A.
Tata Sons Ltd. Nagarjuna oils Oil & Gas 81.40 Strategic Stake 26.00%
Tata Sons Praj Industries Oil & Gas 79.07 Strategic Stake 7.30%
IVRCL
Infrastructure and Alkor Petro
Projects Limited Limited Oil & Gas 1.40 Acquisition
Indian Oil Oil India Limited
Corporation (IOC) (OIL) Oil & Gas N.A. Minority Stake 5.00%
Acquisition
price in US $
Acquirer Target Sector Mn Deal Type % Stake
Advanta India
Limited (Through its
subsidiary Pacific LongReach Plant Agriculture & Agro Controlling
Seeds Australia) Breeders Products 14.01 Stake
ITC Limited
(through its wholly
owned subsidary,
Russell Credit Technico Pty Agriculture & Agro
Limited) Limited Products N.A. Acquisition
Agriculture & Agro
Karuturi Networks Sher Agencies Products 69.09 Acquisition
Cambridge
Technology
Enterprises Ltd
(CTEL) ComCreation Inc IT & ITeS 3.50 Acquisition
Moldtek Cross Roads
Technologies Detailing Inc
Limited (CRD) IT & ITeS 1.30 Acquisition
Kaveri Telecom DCI Digital
Products Communications IT & ITeS 2.20 Acquisition
ORG Informatics DGIT Solutions
Limited Pte. Limited IT & ITeS N.A. Acquisition
Capco Capital
Markets
Company Pte Ltd
(Singapore
i-flex solutions subsidiary of
Limited Capco) IT & ITeS N.A. Acquisition
BPM Inc along
with its
subsidiaries -
MedPlans 2000
Inc. and
Firstsource Solutions MedPlans
Limited Partners, Inc IT & ITeS N.A. Acquisition
Teledata Informatics Soltius Pte.
Limited Limited IT & ITeS 45.00 Acquisition
SubexAzure Limited Syndesis Limited IT & ITeS 164.50 Acquisition
Cranes Software Dunn Solutions
International Limited Group IT & ITeS 13.95 Acquisition
Logan-Orviss
Patni Computer International
Systems (LOI) IT & ITeS N.A. Acquisition
Educomp Solutions Ask n Learn IT & ITeS 3.88 Acquisition
WNS Holdings
through its
subsidiary WNS FLOvateTechnol
Assistance ogies IT & ITeS N.A. Acquisition
Orion
Rolta Technology IT & ITeS N.A. Acquisition
US-based
company in the
Maples ESM applications
Technologies services segment IT & ITeS N.A. Acquisition
Bhilwara Scribe, the Benson
IT arm of LNJ Transcription
Bhilwara Group Technologies IT & ITeS N.A. Acquisition
Increasing
i-flex Solutions Castek Software IT & ITeS N.A. stake to 100% 49.00%
Acquisition
price in US $
Acquirer Target Sector Mn Deal Type % Stake
Alukbond India
Private Limited
(now called
Alcan
Composites
India Private
Alcan Inc Limited) Aluminium N.A. Majority Stake 76.00%
Daewoo Motor's Crosslinks Acquisition
India Factory Finelease Automotive 170.00 (asset sale)
Automotive
Stampings &
Assemblies Ltd
(subsidiary of
Tata AutoComp
Gestamp Servicios Systems Ltd - Strategic
SL TACO) Automotive N.A. Stake 37.50%
Key Safety System Abhishek Auto Strategic
(KSS) Industries Automotive N.A. Stake 50.00%
ZKW Zizala Neolite Minority
Lichtsysteme GmbH Industries Automotive N.A. Stake 26.00%
Pioneer Global Asset
Management (part of BOB Asset
Italian banking group Management Banking & Financial
Unicredito) Limited Services N.A. Majority Stake 51.00%
Inga Advisors Banking & Financial
Collins Stewart Private Ltd Services N.A. Majority Stake 50.00%
Singapore Exchange Bombay stock Banking & Financial Minority
Limited (SGX) exchange Services 42.59 Stake 5.00%
Bombay stock Banking & Financial Minority
Deutsche Boerse exchange Services 42.00 Stake 5.00%
Canbank
Investment
Management
Services Limited
(CIMS) - Canara
bank's asset Banking & Financial Significant
Robeco Groep NV management arm Services 25.56 Stake 49.00%
Holding
company of The
Mangal Keshav Banking & Financial Significant
BankMuscat Group Services N.A. Stake 43.00%
Sundaram Home
Finance Limited,
UCB (a subsidiary of a subsidiary of
international bank Sundaram Banking & Financial Significant
BNP Paribas SA) Finance Limited Services 45.81 stake 49.90%
Vendanta Resources Sesa Goa Metals & Ores 981.00 Majority Stake 51.00%
Investment
Value in
Investors Investee Sector % stake millions US$
Fursa Mauritius (arm of Fursa Agriculture &
Alternative Strategies) Gayatri Starchkem Limited Agro Products 42.63% 4.30
Morgan Stanley Ess Dee Aluminium Aluminum 5.00% 18.86
New York Life Investment
Management India Fund Bajaj Motors Automotive 20.00% 13.3
International Tractors
JM Financial India Fund Limited (ITL) Automotive N.A. 27.78
JM Financial India Fund Sona Group Automotive N.A. 26.67
CLSA Capital Partners Sanghvi Movers Automotive 10.92% 16.13
Reliable Autotech Private
BTS India Private Equity Fund Limited Automotive 20.00% 4.65
Ares Investments Rane Holdings Automotive 10.22% N.A.
ABG Motors (an arm of
ABG Engineering &
Tano Capital Construction) Automotive N.A. 15.00
D E Shaw, South Africa’s
Rand-owned fund Satwa and
IL&FS Argentum Motors Automotive 10.00% 46.51
BNP Paribas Arbitrage Fund Spicejet Aviation 5.43% 15.11
Global Technology
Investment Airworks India Aviation 33.00% 11.63
Banking &
Bellwether Microfinance Financial
FMO Fund Services 18.60% 2.40
Banking &
Bombay Stock Exchange Financial
Deutsche Borse AG Limited Services 5.00% 42.00
Government of Singapore
Investment Corporation Banking &
(GIC), Galleon Partners & Financial
other financial investors Edelweiss Capital Services 20.00% 90.00
Banking &
Firstsource Solutions Financial
Metavante Limited Services 14.00% N.A.
Banking &
Firstsource Solutions Financial
Galleon Partners Limited Services 5.84% N.A.
Banking &
Centurion Bank Of Financial
ICICI Venture Funds Punjab Services 5.32% 40.89
Banking &
Financial
NYSE Group National Stock Exchange Services 5.00% 115.00
ICICI Bank Limited Mascon Global Limited IT & ITeS 5.01% N.A.
Nexus India Capital CE Info Systems Pvt Ltd IT & ITeS N.A. 2.33
Guggenheim Global
Infrastructure Company Vikram Logistic and
Limited (GGI) - an affiliate of Maritime Services Pvt Ltd
Guggenheim Partners (VLMS) Logistics 33.00% N.A.
Clearstone Venture Partners DGB Microsystems Manufacturing N.A. 5.00
SIDBI Venture Capital DGB Microsystems Manufacturing N.A. 3.50
ICICI Venture Funds Electrotherm (India)
Management Limited Limited Manufacturing N.A. 18.22
Goldman Sachs Investments Shrenuj & Company Ltd Others 3.19% N.A.
Textiles &
Bennet, Coleman & Company eYantra Industries Apparels N.A. N.A.
1.84%
FMR Corporation, Fidelity (Increasing
International and their House of Pearl Fashions Textiles & stake to
subsidiaries India Limited Apparels 6.13%) N.A.
S Kumars Nationwide Textiles &
ADM Capital Limited Apparels 10.00% 82.00
1.51%
(increasing
Soma Textiles & Textiles & stake to
Lotus Global Investment Industries Limited Apparels 3.03%) N.A.
Textiles &
Avigo Capital Partners Spykar Lifestyle Apparels N.A. 5.00
James Wolfensohn's private Textiles &
investment fund FabIndia Apparels 6.00% 11.00
JBF Global Pte Limited
(Singapore based
CVCIGP II Client Rosehill subsidiary of JBF Textiles &
Limited and their afflitiates Industries Limited) Apparels N.A. 118.00
Textiles &
Baring Private Equity Asia Pratibha Syntex Apparels N.A. 20.20
Textiles &
Blackstone Group Gokaldas Exports Limited Apparels 50.10% 110.47
1.65%
(increasing
Grabal Alok Impex Textiles & stake to
Sonata Investments Limited Limited Apparels 5.17%) N.A.
Welspun Gujarat Stahl Textiles &
3i Rohren Ltd Apparels 6.60% 80.00
Bennett, Coleman & Co Ltd. Textiles &
(BCCL) Sleep-ins Apparels Apparels N.A. N.A.
Disclaimer:
This summary has been prepared from various public sources. The above information is believed to be correct but the firm is not responsible
for any error or any decision by the reader based on this information. It should not be relied upon as a substitute for detailed advice and the
firm does not accept responsibility for any loss as a result of relying on material contained herein.