Domestic cos outshine foreign counterparts in takeover: ASSOCHAM

New Delhi, Apr 2 (UNI) Domestic firms, which have 35 outbound deals, are way ahead in buying out companies overseas, compared to foreign corporates acquiring majority stakes in Indian firms, an Associated Chambers of Commerce and Industry (ASSOCHAM) eco pulse study said today.

However, when it comes to acquiring just a minority stake, foreign, especially private equity players, were seen to have outnumbered the Indian suitors, the study says adding, in the outright purchases, Indians have done overseas firms.

Among the 30 inbound Merger and Acquisition (M&A) deals, only seven were involved a majority stake in the domestic firms by the overseas entities, whereas of the 35 transactions overseas, Indians went and bought them outright in as many as 32.

According to the study, 133 mergers and acquisitions deals were already struck within the first three months of the calendar year 2006, across IT and ITes, Banking and Financial Services, Pharmaceuticals, Automobile, FMCG including Food and Beverages, Media and other sectors.

''Financial services, pharmaceutical and manufacturing sectors like auto components are likely to see continued high levels of M&A activity with international interest in India as an outsourcing base as well as growth in the domestic market,'' ASSOCHAM President Anil K Agarwal said.

The quarter ending March 31, 2006, has seen major deals like Jet Airways buying Air Sahara for Rs 2,300 crore, Holcim acquiring 14.8 per cent stake in Gujarat Ambuja Cement Ltd and Dr Reddy's Lab getting involved in one of the Indian pharmaceutical's biggest acquisitions in Betapharm of Germany.

Dr Reddy's German acquisition was valued at about 570 million dollar.

More UNI RA SR LR RK1250