Merger and acquisition activity in India picked up following economic reforms in 1991. Notable M&A deals in recent years included Tata Steel acquiring Corus for $12.2 billion, Vodafone purchasing Hutch-Essar for $11.1 billion, and Bharti Airtel acquiring Zain's Africa operations for $10 billion. In the post-recession period, companies have become more cautious about leverage, with equity contributions increasing. However, Indian firms are more willing to pursue international acquisitions, representing increased global participation.

1. NOW, THAT’S A DEAL
MERGER AND ACQUISITION

2.  Merger and acquisition is a strategy adopted by the
corporate sector to consolidate it’s position and improves
it’s competitive strength vis-a-versa its competitors. In
India The M & A activities got a boost after the
announcement of new economic policy in 1991.
 In Indian industry, the pace for mergers and acquisitions
activity picked up in response to various economic reforms
introduced by the Government of India since 1991, in its
move towards liberalization and globalization.

3.  Dynamic government policies
 Corporate investments in industry
 Economic stability
 “ready to experiment” attitude of Indian industrialists
Types of M&A:-
 Horizontal Merger
 Vertical Merger
 Conglomerate Merger
 De-merger Merger
 Reverse merger.

4.  Tata Steel acquired 100% stake in Corus Group on January 30, 2007. It was an all cash
deal which cumulatively amounted to $12.2 billion.
 Vodafone purchased administering interest of 67% owned by Hutch-Essar for a total
worth of $11.1 billion on February 11, 2007.
 India Aluminium and copper giant Hindalco Industries purchased Canada-based firm
Novelis Inc in February 2007. The total worth of the deal was $6-billion.
 Indian pharma industry registered its first biggest in 2008 M&A deal through the
acquisition of Japanese pharmaceutical company Daiichi Sankyo by Indian major
Ranbaxy for $4.5 billion.
 The Oil and Natural Gas Corp purchased Imperial Energy Plc in January 2009. The deal
amounted to $2.8 billion and was considered as one of the biggest takeovers after 96.8%
of London based companies' shareholders acknowledged the buyout proposal.

5.  In November 2008 NTT DoCoMo, the Japan based telecom firm acquired 26%
stake in Tata Teleservices for USD 2.7 billion.
 India's financial industry saw the merging of two prominent banks - HDFC
Bank and Centurion Bank of Punjab. The deal took place in February 2008 for
$2.4 billion.
 Tata Motors acquired Jaguar and Land Rover brands from Ford Motor in March
2008. The deal amounted to $2.3 billion.
 2009 saw the acquisition Asarco LLC by Sterlite Industries Ltd's for $1.8 billion
making it ninth biggest-ever M&A agreement involving an Indian company.
 In May 2007, Suzlon Energy obtained the Germany-based wind turbine
producer Repower. The 10th largest in India, the M&A deal amounted to $1.7
billion.

6. DEUTSCHE
BANK, 5669 CITIGROUP, 3358
MORGAN
ENAM STANLEY, 23540
SECURITIES, 11613
BARCLAY
CAPITAL, 13993
STANDARD
CHARTERED, 21775

7. STANDARD
CHARTERED, 568
MORGAN
EARNST AND
STANLEY, 2919
DEUTSCHE YOUNG, 4917
BANK, 255
ENAM
SECURITIES, 2926
CITIGROUP, 3536

8. Globally ,telecom, media, energy, pharma accounted for
6 of the top 10 deals in first half of this year-------
 CARSO GLOBAL TELECOM-AMERICA MOVIL
($27.4BN)
 QWEST COMMUNICATION-CENTURY LINK
($22.2BN)
 BRITISH SKY-NEWS CORP($13.7BN)
 SMITH INTERNATIONAL-
SCHLUMBERGER($12.2BN)
 ALCON-NOVERTIS($11.1BN)
 BHARTI-ZAIN($10BN)

9. MAJOR COMPANY PERFORMANCE
IN POST RECESSION PERIOD

10.  Bharti's ambitions of an African safari have been
fulfilled, following the acquisition of Zain Telecom's
15-country Africa operations for a total enterprise value
of $10.7 billion.
The acquisition is the second largest by an Indian
company since Tata Steel's $13.6-billion acquisition of
Anglo-Dutch steel maker Corus. It will catapult Bharti
to the rank of the sixth-largest telecom service
provider in the world by number of subscribers.
And, in an ironic twist of fate, one of Bharti's major
competitors in its new markets will be MTN.

11.  Essar Energy, a holding company for the Essar group's
energy business, it will raise $2.5 billion (around Rs 11,250
crore) on the London Stock Exchange (LSE), to finance the
expansion of its power and oil verticals. This will be one of
the largest overseas initial public offerings by an Indian
company.
 Post-listing, the firm is expected to have a market
capitalization of $10 billion (around Rs 45,000 crore), given
equity of around $2 billion (around Rs 9,000 crore) and a
dilution of 20%-25% on the enlarged capital, vice-chairman
Prashant Ruia said. Upon completion, promoters would
hold at least 75% in Essar Energy, which would be listed on
the LSE . The shares are likely to be listed in early May.

12. IN RECESSION PERIOD
 Equity markets were shut
 Global banks were being shy with their balance sheet
 Concern over global economic fundamentals meant
M&A activity was muted

13. IN POST RECESSION PERIOD
 Firm are eager to raise capital to fund expansion
 The appetite for international acquisition starts to
increase
 The growth in India is attracting global pharma’s
interest

14.  Indian promoters, too are willing to cash out, and
enter high return realty and hospitals sectors
 In banking, the entry of new players will have its
impact on some of the older entities
 Globally, telecom, media, energy and pharma
accounted for six of the top ten deals in first half this
year.

15. Recent M&A have significantly lower leverage to what
was seen in the pre-crises era
 Companies have become cautious and don’t want to
take on very high debt
 Off- shore funding, though fairly cheap, is not
available easily
 Indian banks nearly doubled their financing interest
rates, particularly offshore lending from the UK and
CANADA

16.  Wherever acquisition leverage was made available, the
equity part from acquirer was increased to twice the
level before the crises

17.  DEUTSCHE BANK
 Sanjay Agarwal –MD and head, global corporate
finance India
 Top deal- Essar energy’s $1.95 bn listing on LSE
 HSBC
 SANJAY BAJAJ-DIRECTOR
 TOP DEAL-ENGINEERS INDIA’S $210 MN follow on
public offer

18.  NM Rothschild
 Sanjay Bhandarkar- managing director
 Top deal- conducted the 3G spectrum auction
 BARCLAY CAPITAL
 Jaideep khanna-managing director
 Top deal-bharti airtel’s $10 bn deal with zain for the
latter’s business in africa

19.  RELIGARE CAPITAL
 Tarun kataria- CEO
 TOP DEAL- Fortis health care’s potential buyout of
parkway
 JP MORGAN
 Rohit chatterji- head, invest banking
 Top deal- Infrastructure company HDIL’s $250mn QIP

20.  KOTAK MAHINDRA CAPITAL
 Falguni nayar- MD and CEO
 Top deal- stanchart $518mn IDR
 MORGAN STANLEY
 Aisha de sequiera- Head, investment banking
 Top deal- Adani Enterprise’s $850mn QIP

21.  After the recession indian company have become
cautious and don’t want to take on a very high debt.
We can see an increase in participation of Indian
companies globally taking part in merger and
acquisition which is a good sign as it represents that
the indian companies are on a verge of progress in the
global corporate world.