This document summarizes several major mergers and acquisitions involving Indian companies between 2011-2012. It discusses Mahindra acquiring a controlling stake in SsangYong Motors, GVK Group acquiring Hancock Coal in Australia, iGATE acquiring Patni Computers, Jindal Steel acquiring CIC Energy, Fortis acquiring Quality Healthcare businesses, Gujarat Gas acquiring majority stake in GGCL from BG Group, Suzlon acquiring Repower, Vedanta acquiring Cairn India, Reliance Power acquiring RNRL, and RIL forming a joint venture with BP. Key aspects of each deal such as purchase price, synergies, and business overview are provided.

1. Top Mergers & Acquisitions in
Indian Subcontinent
By:
Rahul Sharma (94)
Parth Belani (73)

2. Mahindra and Mahindra
& SsangYong
On Feb 2011,Mahindra acquired a 70%
controlling stake in SsangYong, the South
Korean auto maker for US $ 463 million.
(Anand Mahindra, MD)
Automobile,Defense,Energy,Agribusiness,Retail,Real
Estate,Financial Services,Farm Equipments etc
• Commercial Vehicles (Alfa,Maxximo,Tourister Buses,Genio,Gio etc)
• Personal Vehicles (Bolero,Scorpio,Thar,Xylo,Verito,Quanto,REVA etc)
(Lee Yoo-il,CEO)
• Korando,Actyon,Rexton II,Kyron,Musso,Korando,Chairman
W,Chairman H,Transtar

3. Some Key Aspects
Strong R & D workforce of Ssangyong.
Strong Dealer Network of Ssangyong i.e 98
countries around the Globe.
Ssangyong has an edge over premium
segment vehicles.
A way to enter Chinese Auto Market owing to
huge potential.

4. GVK & Hancock Coal
 Infrastructure major GVK Power, part of the GVK Group, on
16/Sep/2011,acquired Australia's Hancock Coal for $1.26
billion, in one of the largest overseas acquisitions by an Indian
infrastructure entity.
(GVK Reddy,MD GVK Group)
Energy,Airports,Transportation,Hospitality,Life Sciences, Resources
etc.
• Energy (CCPP, Coal Based Thermal Power Plants, Hydro )
(Georgina Hope Rinehart,Chairman Hancock)
Hancock Prospecting Pty Ltd (HPPL) is a diversified Australian energy and
resources company, with a strong record of pioneering the economic
development of regional Australia.
• Founded by Lang Hancock over 50 years ago.

5. Some Key Aspects
 Deal included acquiring majority holding in coal
resources and railway line and port infrastructure
projects of Hancock Coal.
 Long term coal supply contracts for the purchase
of up to 20 million tonnes every year.
 Capacity to support 7500MW of power generation
w.r.t GVK.
 The Hancock coal project consists of 7.9 billion
tonnes reserves.
 First phase of production to start in 2014 and has
been envisaged to produce 30MT of high quality
coal.

6. iGATE & Patni
On 12 May,2011 iGate acquired 82.5 % stake
in Patni Computers.
(Phaneesh Murthy, CEO)
American multinational corporation which provides information
technology, consulting and business process outsourcing (BPO) services.
• Headquarted at Fremont, California USA.
• Apart from India, its presence is in United States of
America, Australia, Belgium, Canada, France, Mexico, Malaysia, United Kingdom, Germany,
Japan, Switzerland, South Africa, Sweden
(Jai S Pathak,Chairman)
Services include application development, application maintenance and
support, packaged software implementation, infrastructure management
services, product engineering services, business process outsourcing, and
quality assurance services.

7. Some Key Aspects
• Acquisition was made with a debt of $770 million
and a convertible preferential stock issue
amounting to $330 million.
• To acquire Patni,iGate bought the entire 45.6 per
cent shareholdings of the promoters — Patni
brothers Narendra, Gajendra and Ashok, and 17.4
per cent held by private equity firm General
Atlantic at a price of Rs 503.50 per share.
• Combined company will be a key player across
several verticals including banking & financial
services, insurance, manufacturing, retail, and
media & entertainment.

8. JSPL & CIC Energy
 On Sep 5th,2012-Jindal BVI Limited (JBVI), a subsidiary of steel
major Jindal Steel and Power Limited (JSPL) has acquired
Canadian listed coal Company CIC Energy Corp. (CIC) for about
US$115 million (over Rs 600 crore) by way of a merger of JBVI
and CIC
Naveen Jindal ,MD
-It is a part of over US $ 17 billion diversified O. P. Jindal Group
and presence in Australia, Asia, Africa etc.
-Steel, Mining, Power Generation and Infrastructure
Warren Newfield - CEO and Chairman
• Coal Based Energy Company listed on Toronto & Botswana Stock
Exchange.CIC Energy Corp. is engaged in the advancement of the
Mmamabula Energy Complex at the Mmamabula Coal Field in Botswana,
Africa

9. Some Key Aspects
 Pursuant to the merger of JBVI and CIC, JBVI will make
cash payment of C$ 2 per share to the current CIC
shareholders aggregating to C$ 116 Mn (approx)
 Deal will provide JSPL access to CIC’s high quality
thermal coal in Greater Mmamabula coalfields in SE
Botswana which is estimated to be in excess of 6 billion
tonnes (approx).
 It will provide JSPL the opportunity to tap the highly
lucrative and power deficient South African
Development Community (SADC) countries and given
the huge resource, will also provide an opportunity to
set up a Coal to Hydrocarbons project.

10. FORTIS & Quality
Healthcare
• On 11 Oct,2010 Fortis Global Healthcare Holdings
Pte Ltd acquired healthcare businesses of Hong
Kong-based Quality Healthcare Asia Ltd (QHA),
excluding QHA’s elderly healthcare business, for
HK$1.52 Bn ($193 Mn).
Malvinder Mohan Singh, Chairman
• Fortis Healthcare Limited is a leading, integrated healthcare delivery provider in the Pan Asia-
Pacific region. The healthcare verticals of the company span diagnostics, primary care, day care
specialty and hospitals, with an asset base in 10 countries like Australia, Canada, Dubai, Hong
Kong, India, Mauritius, New Zealand, Singapore, Sri Lanka and Vietnam
Paul Li,CEO
Quality HealthCare Medical Services Limited was founded in 1998
• Life Style Enhancement,Dental Medicine,Eye Care,Skin
Care,Physiotherapy,Dietetics etc

11. Some Key Aspects
 Fortis to increase it healthcare business Pan Asia
region.
 Fortis to create an integrated healthcare business
with high quality medical professionals and
infrastructure.
 Fortis Global Healthcare acquired five subsidiaries
of QHA - Quality HeatlhCare, Quality HealthCare
Medical Holdings, Quality HealthCare Medical
Services, Quality HealthCare Services andPortex.

12. The Sarkari Company that Acquired an
MNC
GSPC GGCL
• Gujarat State Petroleum • Gujarat Gas Company Ltd
Corporation • One of India’s leading natural
• Oil and gas exploration gas distribution companies
• India's only State • Established in 1980, and
Government-owned oil and headquartered in Ahmedabad
gas company • Operates primarily in Gujarat
• Incorporated in 1979, • The BG Group acquired a
headquartered in Ahmedabad majority stake in the company
in 1997.

13. • BG’s 65.12% stake for Rs 2460
crore GSPC
• India’s largest City Gas E&P
Distribution (CGD) company
GSPL
• Greater than Indraprastha Gas
Transmission
and Mahavitaran Gas put
together
GGCL
• 8 mmscmd gas to over 7 lakh Distribution
customers

14. Cash surplus child, Debt-burdened
father
Suzlon RePower
• World’s 5th Largest wind • Germany based
energy equipment • Founded in 2001
manufacturer • Controlling stake acquired in
• Established in 1995 2007 at US $ 1.6 billion
• Headquartered in Pune • Remaining 5% stake acquired
• Installed capacity of 17 GW in in October 2011
32 countries
• 8 MW installed capacity in
India

15. • The strategy was –
– To increase international presence
– Suzlon to work in developing countries
– Repower to concentrate in developed countries
• What went wrong
Losses because of
– Rising interest cost (high debt)
– Rising depreciation costs

16. Poor Financials
2009-10 2010-11 2011-12
Revenue 207.79 178.79 210.82
EBIDTA 9.43 10.47 18.21
PAT -9.83 -13.24 -4.79
Gross debt outstanding 97.64 102.10 131.42
In Billion Rs

17. Vedanta Resources Cairn India
• Founded : 1976, in Bombay • Founded: 2007
• Global mines and metals • Based in Gurgaon
company • Business: Oil and gas E&P
• Listed on London stock • Was part of Cairn Energy Plc.
exchange
• Main products: copper, zinc
aluminum, lead, iron ore

18. The deal
• Vedanta Resources Plc. initially acquired 58.5% of Cairn
India for a total consideration of $8.67 billion in August
2010
• Later Vedanta acquired an additional 18.5% on the open
market including a 10.4% stake from for $1.5 billion.
• Why?
– To consolidate already strong presence in India
– To diversify in the field of Oil and Gas
• The ONGC controversy

19. Mar'12 Mar'11 Mar'10 Mar'09 Dec'07
EBIT* 12.69 -26.48 -18.5 -9.66 -49.51
PAT* 43.96 -212.67 -68.95 54.24 -78.82
EPS 0.23 -1.12 -0.3 0.23 -0.4
* Billion Rupees
• Q1 this year
– 40% increase in the net profit to Rs 3825.7 crores
– Income rose 20% to Rs 4440 crores
– Net forex gain of Rs 866 Crores

20. ADAG’s Backward Integration
R-Power RNRL
• Founded: 2007 • Founded: 2000
• Business: Develop, • Business: sourcing, supply
construct and operate and transportation of gas,
power projects coal and liquid fuels

21. The Deal
• In July 2010
• 100% stake at Rs 50000 crores
• To accelerate R-Power’s plans to set up a 10,000-Mw
gas-based power plants.
• Diversify from a pure thermal power generation
company to quickly venture into other value chains of
energy business.
• To make R-Power a domestic power company with one
of the largest coal reserves. It has about four billion
tonnes of coal reserves in Indonesia and India
• Share swap ratio of 4:1 and the controvercy

22. RIL-BP Joint Venture
RIL BP

23. • JV In February 2011
• BP’s 30% stake in JV for an initial payment of
$7.2 billion
• 21 out of 23 blocks in KG-D6 and NEC-25
• RIL to access BP’s • BP to get easy entry in the
expertise in E & P of oil Indian market
and gas from deep below • With minimum risk
seabed because of partnership
• Technology to arrest the with RIL
sharp fall in production
• Fuming Oil ministry and
DGH
• The deal to partially
offset RIL’s expected $10
billion investment in US
shale gas

24. The deal
• JV In February 2011
• BP’s 30% stake in JV for an initial payment of
$7.2 billion
• 21 out of 23 blocks in KG-D6 and NEC-25

25. Benefits
To RIL To BP
• RIL to access BP’s expertise • BP to get easy entry in the
in E & P of oil and gas from Indian market
deep below seabed • With minimum risk because
• Technology to arrest the of partnership with RIL
sharp fall in production
• Fuming Oil ministry and
DGH
• The deal to partially offset
RIL’s expected $10 billion
investment in US shale gas
But all is not well today 