India Inc prefers N America and Asia in its global MA chase

New Delhi, Aug 12 (UNI) North America and Asia were the favourite hunting grounds of India Inc on global acquisition chase as the takeovers deals in these regions touched a whopping seven billion dollars and 4.2 billion dollars respectively within the first four months of the financial year 2007-08, according to an industry body.

As the fast expanding Indian industry laid its foot on the foreign turf with the burgeoning kitty of 15.3 billion dollars, the US remained the most sought after destination for the Indian companies pursuing their global dreams.

The acquisition deals with the US-based companies touched 5.1 billion dollars during the period April-July 2007, said a report by Ficci titled 'Study on Mergers and Acquisitions during April-July 2007-08'.

Tatas, Essar, Reliance and Infosys were among the biggest acquirers in the US. Tata Group remained at forefront with their total deal values worth 2.13 billion dollars in steel, hospitality and automotive sector, the study said.

Essar Group acquired Minnesota Steel for 1.65 billion dollars in the US. Reliance Communication expanded to US communications market by acquiring Yipes for 300 million dollars while Infosys plans to acquire Phillips Global for 200 million dollars.

Another big acquisition was of Globeleq by D S Construction for 542 million dollars.

''The equation of business relations with the western countries is undergoing a significant change. Indian business leaders are aiming inorganic expansion through the most industrialised country of the world,'' Assocham President Venugopal N Dhoot said.

Metal companies in Canada were picked up by the Indian bluechips with a war chest of 1.7 billion dollars. Essar Global acquired Algoma Steel for 1.58 billion dollars, while Aditya Birla announced a takeover of Utkal Alumina International for 0.19 billion dollars.

Among the Asian countries, Vietnam was the largest receiver of the deal money as Tata Steel entered into a joint venture with Vietnam Steel with a 65 per cent stake for 3.5 billion dollars.

Indonesia, Israel and Singapore were other countries where Indian companies made their acquisitions.

In Indonesia, Tata Power Company had acquired a 30 per cent stake in PT Kaltim Prima Coal and PT Arutim Indonesia for 1.1 billion dollars. Sun Pharmaceuticals acquired Israel-based Taro Pharmaceuticals for 454 million dollars, while Golden Ace acquired RSH Ltd in Singapore for 151 million dollars.

Europe was the third-favoured station by India Inc on global consolidation after North America and Asia.

As the takeover deals in the region touched three billion dollars during the four-month period, Germany and United Kingdom received maximum of the funds.

While Indian acquisitions of German companies were worth 1.52 billion dollars, the UK received funds to the tune of 1.2 billion dollars.

The largest acquisition in Germany during the period was of Repower Systems by Suzlon Energy for 1.3 billion dollars.

United Breweries also acquired Whyte&Mackay for 1.16 billion dollars in the UK.

The Indian companies flagged their presence in Italy and Spain with investments of 97 million dollars and 19 million dollars in takeover deals.

South American and African region, however, remained low on the acquisition radar with six million dollars and five-million-dollar deals respectively.

UNI