Indian Companies invest $20 billion in M&A abroad

Indian companies had spend $20 billion to fund the 147 mergers and acquisitions deals abroad in 2006, according to Dealogic. In comparison, such deals in last full year accounted for less than $5 billion, with 45 M&A deals.

The biggest contributor to this year's deals was the Tata - Corus deal which was valued at about $9.8 billion. This was followed by ONGC's $1.4 billion takeover of Campos Basin Oils Fields and 50 percent stake in Omimex de Colombia ranked second and third biggest deals. United Breweries $0.75 billion offer for UK-based distiller Whyte & Mackay and the takeover of Daewoo Electronics by Videocon for $0.72 billion formed the top five deals.

Metal and steel was the most targeted industry with $10 billion via nine deals, followed by Oil and Gas with $2.4 billion through seven deals. $11 billion were targeted at UK alone with 21 deals, whereas $1.8 billion in the US for 29 deals.

ABN Amro was the leader being adviser for 3 deals for $10.9 billion, followed by Deutsche Bank with $9.8 billion through just one deal.

Mergers and Acquisitions in Indian companies have attained new heights this year and will help Indian companies to go global, enter growth markets with lower risks.

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