Table of Contents

Executive
Summary ............................................................................................................................ 4
Introduction
to
Merger
and
Acquisition ..............................................................................................
5Merger ............................................................................................................................................
..........
5Acquisition ......................................................................................................................................
.......... 5
Distinction
between
mergers
and
acquisition ....................................................................................5
Types
of
Mergers ...............................................................................................................................
6
Benefits
of
Mergers............................................................................................................................
7
Other
motives
for
Merger ..................................................................................................................
7
Costs
of
mergers
and
acquisitions .......................................................................................................
8
Regulatory
and
Legal
Framework .......................................................................................................
9
M&A Activities in 2006 .....................................................................................................................
11Sectoral
Breakup
.....................................................................................................................................
12Top
Deals

Indian
Targets ...................................................................................................................... 14Top Deals
Overseas Targets ................................................................................................................. 14
M&A Activities in 2007 .....................................................................................................................
15Sectoral
Breakup
.....................................................................................................................................
16Top
Deals ................................................................................................................................................
.
18Top
Deals

Indian
Targets ...................................................................................................................... 19Top Deals
Overseas Targets ................................................................................................................. 19
M&A Activities in 2008 .....................................................................................................................
20Sectoral
Breakup
.....................................................................................................................................
21Top
Overseas
Deals ................................................................................................................................. 23Top
Deals Indian Targets ......................................................................................................................
23Top
Deals

Overseas
Targets ................................................................................................................. 24
M&A Activities in 2009 .....................................................................................................................

25Sectoral
Breakup
.....................................................................................................................................
25Top
Deals ................................................................................................................................................
. 26
M&A Activities in 2010 .....................................................................................................................
27Sectoral
Breakup
.....................................................................................................................................
28Top
Deals ................................................................................................................................................
. 29
Top
M&A
Deals
2006
to
2010
and
Analysis .......................................................................................
29
Porters Model on Telecom Sector ....................................................................................................
30
PEST
Analysis
of
Telecom
Sector .......................................................................................................
31
Bibliography ....................................................................................................................................
32

Executive Summary
M&A is the important approach to expansion and development of todays enterprises, which can
help the enterprises quickly have access to market channels and expand market share, thereby
bringing bout economic scale benefits for enterprises. There has been an increase in both the
number and size of Mergers and Acquisitions (M&A) in all sectors of Indian economy. However,
the deal economy worldwide had suffered in the years 2008 and 2009 since the global economy
went through one of its worst crises since the Great Depression of 1929. The legendary financial
institutions like Lehman Brothers collapsed while several other financial behemoths had to be
saved from going into bankruptcy. Naturally, there was less money available to do deals and

corporate cut down on expansion both organically and inorganically. The effect was showing on
in India too even though the economy showed signs of revival in the latter part of the year.
However, the outlook seems brighter in year 2010. The activities are picking up and more deals
are happening.
2006
- Corporate finance activity in India witnessed 697 deals worth Rs 865 bn (US$ 19 bn) in 2006,
arise of 18% in deal value over last year. The average deal size for 2006 was around Rs 1,241 mn
(US$ 28mn).
2007
- Domestically 2007 saw another record year of deal activity, with total mergers and
acquisitions(M&A) and private equity (PE) deals up 82% from Rs. 865 bn (US$ 21 bn) in 2006 to
Rs. 1,576 bn (US$ 38bn) in 2007. As well as volume, both number (867 against 697) and average
size of deals also rose significantly.
2008
- A total of 455 M&A transactions were announced, down from 605 in 2007, with a combined
value of Rs.1,027 bn (US$ 23 bn). The average value of M&A deals was approx Rs.2.3 bn (US$ 52
mn).
2009
During 2009, Indian companies were involved in a total of 356 M&A deals, down 34% from
2008.The median deal value in 2009 (for the 151 deals which had announced transaction values)
was $22.3million, an increase from the $16.06 million in 2008. The combined value of deals was
$12.5 billion.
2010
For the year 2010, India's M&A deal value has reached a whopping US$68.3 billion, having
grown three-folds compared to the value recorded in 2009," E&Y said on Thursday. India recorded
554 cross border deals worth US$54.9 billion. The average deal size last year rose to US$120
million. In all the years, telecom sector has emerged as the most opportunistic sector. It is
followed by BFSI, Metals & Ores and Oil & Gas Sector.

Introduction to Merger and Acquisition

Merger - A merger occurs when two or more companies combines and the resulting firm
maintains the identity of one of the firms. One or more companies may merger with an existing
company or they may merge to form a new company. Usually the assets and liabilities of the
smaller firms are merged into those of larger firms.
Merger may take two forms-1.
Merger through absorption2.
Merger through consolidation.
Absorption
Absorption is a combination of two or more companies into an existing company. All companies
except one loose their identity in a merger through absorption.
Consolidation
A consolidation is a combination if two or more combines into a new company. In this form of
merger all companies are legally dissolved and a new entity is created. In consolidation the
acquired company transfers its assets, liabilities and share of the acquiring company for cash or
exchange of assets.

Acquisition
A fundamental characteristic of merger is that the acquiring company takes over the ownership
of other companies and combines their operations with its own operations. An acquisition may be
defined as an act of acquiring effective control by one company over the assets or management
of another company without any combination of companies.
Takeover
A takeover may also be defined as obtaining control over management of a company by another
company.
Distinction between mergers and acquisition
Although they are often uttered in the same breath and used as though they were synonymous,
the terms merger and acquisition mean slightly different things. When one company takes over
another and clearly established itself as the new owner, the purchase I called an acquisition.
From a legal point of view, the target company ceases to exist, the buyer" swallows" the business
and the buyer's stock continues to be traded. In the pure sense of the term, a merger happens
when two firms, often of about the same size, agree to go forward as a single new company
rather than remain separately owned and operated. This kind of action is more precisely referred
to as a "merger of equals." Both companies' stocks are surrendered and new company stock is
issued in its place.
In practice, however, actual mergers of equals don't happen very often. Usually, one company
will buy another and, as part of the deal's terms, simply allow the acquired firm to proclaim that
the action is a merger of equals, even if it's technically an acquisition. Being bought out often
carries negative connotations, therefore, by describing the deal as a merger, deal makers and
top managers try to make the takeover more palatable. A purchase deal will also be called a
merger when both CEOs agree that joining together is in the best interest of both of their
companies. But when the deal is unfriendly that is, when the target company does not want to
be purchased - it is always regarded as an acquisition. Whether a purchase is considered a
merger or an acquisition really depends on whether the purchase is friendly or hostile and how it
is announced. In other words, the real difference lies in how the purchase is communicated to
and received by the target company's board of directors, employees and shareholders.
Types of Mergers
Mergers are of many types. Mergers may be differentiated on the basis of activities, which are
added in the process of the existing product or service lines. Mergers can be a distinguished into
the following four types:1.Horizontal Merger
2.Vertical Merger
3.Conglomerate Merger
4.Concentric Merger
Horizontal merger
Horizontal merger is a combination of two or more corporate firms dealing in same lines of
business activity. Horizontal merger is a co centric merger, which involves combination of two or
more business units related to technology, production process, marketing research and
development and management.
Vertical Merger

Vertical merger is the joining of two or more firms in different stages of production or distribution
that are usually separate. The vertical Mergers chief gains are identified as the lower buying cost
of material. Minimization of distribution costs, assured supplies and market increasing or creating
barriers to entry for potential competition or placing them at a cost disadvantage.
Conglomerate Merger
Conglomerate merger is the combination of two or more unrelated business units in respect of
technology, production process or market and management. In other words, firms engaged in the
different or unrelated activities are combined together. Diversification of risk constitutes the
rational for such merger moves.
Concentric Merger
Concentric merger are based on specific management functions where as the conglomerate
mergers are based on general management functions. If the activities of the segments brought
together are so related that there is carry over on specific management functions such as
marketing research, Marketing, financing, manufacturing and personnel.
Benefits of Mergers
Diversification: - Companies that desire rapid growth in size or market share or diversification in
the range of their products may find that a merger can be used to fulfill the objective instead of
going through the tome consuming process of internal growth or diversification. The firm may
achieve the same objective in a short period of time by merging with an existing firm. In addition
such a strategy is often less costly than the alternative of developing the necessary production
capability and capacity. If a firm that wants to expand operations in existing or new product area
can find a suitable going concern. It may avoid many of risks associated with a design;
manufacture the sale of addition or new products. Moreover when a firm expands or extends its
product line by acquiring another firm, it also removes a potential competitor.
Synergism: - The nature of synergism is very simple. Synergism exists whenever the value of the
combination is greater than the sum of the values of its parts. As broadly defined to include any
incremental value resulting from business combination, synergism in the basic economic
justification of merger. The incremental value may derive from increase in either operational or
financial efficiency.
Increased market share
Lower cost of operation and/or production
Higher competitiveness
Industry know how and positioning
Financial leverage
Improved profitability and EPS
The Income Tax Advantages
-In some cases, income tax consideration may provide the financial synergy motivating a
merger, e.g. assume that a firm A has earnings before taxes of about rupees ten crores per year
and firm B now break even, has a loss carry forward of rupees twenty crores accumulated from
profitable operations of previous years. The merger of A and B will allow the surviving
corporation to utility the loss carries forward, thereby eliminating income taxes in future periods.
Other motives for Merger

Merger may be motivated by two other factors that should not be classified under synergism.
These arethe opportunities for acquiring firm to obtain assets at bargain price and the desire of
shareholders of the acquired firm to increase the liquidity of their holdings.
1.Purchase of Assets at Bargain Prices Mergers may be explained by opportunity to acquire assets, particularly land mineral rights,
plant and equipment, at lower cost than would be incurred if they were purchased or constructed
at the current market prices. Many of the mergers can be financed by cash tender offers to the
acquired firms shareholders at price substantially above the current market. Even so, the assets
can be acquired for less than their current casts of construction. The basic factor underlying this
apparently is that inflation in construction costs not fully rejected in stock prices because of high
interest rates and limited optimism by stock investors regarding future economic conditions.2.
2.Increased Managerial Skills or Technology Occasionally a firm will have good potential that is finds it unable to develop fully because of
deficiencies in certain areas of management or an absence of needed product or production
technology. If the firm cannot hire the management or the technology it needs, it might combine
with a compatible firm that has needed managerial, personnel or technical expertise. Of course,
any merger, regardless of specific motive for it, should contribute to the maximization of owners
wealth.

3.Acquiring new technology

-To stay competitive, companies need to stay on top of technological developments and their
business applications. By buying a smaller company with unique technologies, a large company
can maintain or develop a competitive edge.
Costs of mergers and acquisitions
Mergers and acquisitions can be costly due to the high legal expenses, and the cost of acquiring
a new company that may not be profitable in the short run. This is why a merger or acquisition
may be more of strategic corporate decision than a tactical maneuver. Moreover, if a poison pill
unknowingly emerges after a sudden acquisition of another company's shares, this could render
the acquisition approach very expensive and/or redundant.
Legal expenses
Short-term opportunity cost
Cost of takeover
Potential devaluation of equity
Intangible costs
M&A activity can also be exacerbated by the short-term cost of opportunity or opportunity cost.
This is the cost incurred when the same amount of investment could be placed elsewhere for a
higher financial return. Sometimes this cost does not prevent or deter the merger or acquisition
because projected long-term financial benefits outweigh that of the short-term cost.
Regulatory and Legal Framework
The legal framework of M&A involves study of following acts
-The Companies Act, 1956 - Sections 390 - 396A, 108A, 17, 319 and 42.
-SEBI (Substantial Acquisition of Shares and Takeovers) Regulation, 1997

-The Competition Act, 2002 - Sections 5 and 6 deal with Combination and Regulation of
Combination respectively.
-The Income Tax Act
To pursue the benefits of merger and acquisition, various rules and regulations have been made
time to time. He regulatory or legal aspect of M&A involves following
-Proposal Analysis Having conceived the idea of amalgamation or merger between two or
morecompanies the management of respective companies have to look into the pros and cons of
themerger scheme. The prospects of the target firm are evaluated with respect to its
overallcontribution after acquisition.
-Determination of Exchange Ratio The merger or acquisition requires exchange of shares.
Theexchange ration is to be negotiated.
-Approval of the Board of Directors The scheme of acquisition envoved as the result of
negotiations is put finally before the BoD of the respective companies for their approval.
-Approval of Shareholders The scheme as approved by the respective Boards, is placed
beforethe shareholders of the respective companies for their approval. Sections 390 to 396A of
Companies Act, 1956 contain provisions regarding amalgamation of two or more
companies.According to Section 391, the scheme should be approved at the meeting of the
members orclass of members, as the case may be, of the respective companies representing
3/4thin value and majority in numbers, whether present in persons or by proxies. In case of
acquisition, therestrictions placed by Section 372 of the Companeis Act 1956 have to be kept in
view.
-Consideration of Interest of the Creditors According to Section 391, the scheme should also
beapproved by majority of creditors in number and th in value.
-Approval of Court The scheme of the amalgamation as approved has to be submitted to
courtfor its approval. The court would approve the scheme only when it is satisfied that the
scheme is just and reasonable for all concerned. An amalgamation scheme will not be approved
by thecourt unless it has received report from the Registrar of Companies that the affaires of
thecompany or companies to be wound up, as a result of amalgamation, had not been conducted
ina manner prejudicial to the interests of the members or to the public interest.
Section 394A of the Companies Act, 1956, further provides that before passing as order for
sanctioningof any amalgamation scheme, the court must give notice for every application made
to it for thispurpose to the Central Govt. to that effect.
The provision of the Companies Act and MRTP gives only procedural requirements of an
amalgamationscheme. The actual scheme is designed on the basis of the tax implications that it
will have especiallyfrom the view point of the Income Tax. The following are some of the
important provisions of thevarious tax laws, which affect the amalgamation to be valid under the
Income Tax Act
-All properties of the amalgamating company must be transferred to the amalgamated company.
-All liabilities of the amalgamating company must be transferred to the amalgamated company
-At least 9/10 th of the shareholders of the amalgamating company must become
theshareholders of the amalgamated company.

According to Section 34, the amalgamated company can continue to claim future depreciation on
theassets transferred to it under the scheme of amalgamation.
Section 45 and 47 deals with provisions relating to capital gains. The transfer of assets of
anamalgamating company to amalgamated company under a scheme of amalgamation is not
consideredto be a transfer for the purpose of capital gains, provided the amalgamated company
is an IndianCompany.
Sections 32A, 33 and 33A deals with the investment allowances, development rebate and
developmentallowance.
Sections 35 and 35A consider the expenditure on scientific research, acquisition of patents rights
orcopyrights.Unabsorbed depreciation and past losses of amalgamating company cannot be
carried forward by theamalgamated company.
According to Section 170, the amalgamating company will have to pay taxes on income upon the
date of amalgamation. The amalgamated company will have to pay taxes after that date.
However, in the eventof default by the amalgamating company, the amount of tax not paid will
be resourceable from theamalgamated company. In this way the merger or acquisition takes
place.
M&A Activities in 2006
The India story continued to attract investors from overseas as well as from within India in
2006.Corporate finance activity in India witnessed 697 deals worth Rs 865 bn (US$ 19 bn) in
2006, a rise of 18% in deal value over last year. The average deal size for 2006 was around Rs
1,241 mn (US$ 28 mn).
The purchase of Hutchisons Indian telecoms business was the biggest deal of the year.
Information technology, telecom and finance deals have dominated all M&A activity with a share
of 48%of total deal value.

M&A Activities in 2007

2007 turned into a remarkable year for Indian M&A, both at home and abroad. Spending more
moneyon overseas acquisitions than foreign companies did in their own market, Indian
companies have madetheir presence felt globally. Domestically 2007 saw another record year of
deal activity, with totalmergers and acquisitions (M&A) and private equity (PE) deals up 82%
from Rs. 865 bn (US$ 21 bn) in2006 to
Rs. 1,576 bn (US$ 38 bn) in 2007. As well as volume, both number (867 against 697) andaverage
size of deals also rose significantly.

The real story of the year is overseas, where Indians bought up companies in Europe and the
USA,splashing out some Rs. 1,367 bn (US$ 33 bn).
The largest PE deal of the year was Temasek Holdings, along with ICD, Macquarie, AIF Capital,
Citigroupand India Equity Partners, acquiring a 10% stake in Bharti Infratel, a telecom tower
subsidiary of BhartiAirtel, for Rs. 41 bn (US$ 1 bn).
Other major deals included Goldman Sachs, Swiss Re and Nomura acquiring a 6% stake in ICICI
FinancialServices, a financial services holding company, for Rs. 27 bn (US$ 646 mn); and Carlyle
acquiring a 6%stake in HDFC Ltd., a housing finance company, for Rs. 26 bn (US$ 643 mn).
Unlike in the past when growth was led by a few sectors, 2007 has seen a more broadly based
activity.The telecom sector overtook the IT Industry and dominated the M&A scene with a 33%
share in thetotal deal value. It was followed by finance with a 15% share, cement and building
material 7%, oil andgas 5% and metals 5%. One of the emerging sectors for this year has been
aviation, shipping andlogistics accounting for 4% of the total deal value.

Sectoral Breakup
Telecom:
The largest deal of the sector was Vodafone acquiring a 67% stake in Hutchison Essar, now
VodafoneEssar, Indias fourth largest telecom player. With more than five contenders, including
Indias Reliance

Another important transaction in the sector was by German company Linde AG. Linde increased
itsholding in BOC India from 55% to 74% through a preferential allotment of equity shares. It
paidapproximately Rs. 6 bn (US$ 146 mn) for the stake.
Metals
The metal sector accounted for 5% of the total deal values. The largest deal in the sector was
Vedantasacquisition of a 71% stake in Sesa Goa, 51% from Mitsui & Co and 20% through an
open offer, for a totalconsideration of Rs. 56 bn (US$ 1.4 bn). Another major transaction was the
investment of Rs. 13 bn (US$320 mn) by Aditya Birla Group companies to consolidate their
position in Hindalco Industries through apreferential allotment.
Other Sectors
The media sector (4%) saw 45 deals and a lot of private equity interest with the largest deal
being theinvestment of Rs. 11 bn (US$ 259 mn) by Temasek investing in Inx Media, a TV
broadcast company.Other deals included an investment of Rs. 7 bn (US$ 166 mn) by South Asia
Entertainment Holdings Ltd.(a group company of Astro All Asia Networks Plc) in Sun Direct TV for
a 20% stake and Blackstone inUshodaya Enterprise taking a 26% stake for Rs. 6 bn (US$ 146
mn).
Engineering had a 4% share in total deal value with its largest deal being the acquisition of
AnchorElectricals by Japan based Matsushita for Rs. 20 bn (US$ 488 mn). In the automotive
sector (automotivesand auto components 3%) Robert Bosch acquired an additional 9% stake in
its subsidiary MotorIndustries Co. through an open offer, for Rs. 14 bn (US$ 330 mn) increasing
its holding to 70%. AlsoM&M acquired 63% stake in Punjab Tractors for Rs. 14 bn (US$ 340 mn)
which increased its share in thetractors market to 40%.
The aviation sector (2%) saw consolidation with a few large deals. Jet Airways, took over Sahara
Airlineand Kingfisher Airlines acquired a significant stake in Deccan Aviation. Separately, the
Governmentdecided to merge the operations of the two state owned carriers, Indian Airlines and
Air India.
Top Deals

The largest deal of the year was Indias steel giant Tata Steel acquiring Anglo-Dutch giant Corus.
After afour month long battle Tatas finally defeated the rival bidder CSN, paying a premium of
34% over theoriginal bid price made in October 2006. Tata Steel paid US$ 12.1 bn for Corus 18
mn ton steel capacity. The deal made Tata Steel the worlds 6th largest steel manufacturer.
Another high-profile, multi-billion dollar deal was by Indias leading copper and aluminum
manufacturer Hindalco. Hindalco spent US$ 3.33 bn to acquire Atlanta based Novel is, a leading
aluminum sheet maker. The deal brought in the readymade cans and screw-caps market in the
US with the two most famous clients Coca-Cola and Anheuser-Busch. It also provided Hindalco
with a significant presence in the automotive and transportation industry making it one of the
worlds largest aluminum rolling companies.
The third largest cross border deal of the year was Suzlon Energy acquiring Germany based
Repower for US$ 1.8 bn. The deal was finalized only after the withdrawal by the French nuclear
energy group Areva after four long months. With this acquisition, following the acquisition of
component supplier Hansen last year, Suzlon has further consolidated its position in the
international wind energy market.
Some other large cross border deals included Essar Group acquiring Canada based Algoma Steel
for US$1.6 bn and United Spirits acquiring UK based Whyte & Mackay for US$ 1.2 bn.

M&A Activities in 2008

The year of 2008 was badly affected by the global slowdown. The value of international
investment dropped by over one-third in India. Globally M&A activity recorded a drop of 31%.
This is especially true in the major growth industries of Telecom and Pharma, where consolidation
has increased and seems set to continue.
The total value of M&A and PE deals for the year was down only 4% on 2007, at Rs.1,511 bn (US$
34 bn) the first year to year decrease since 2002-03. Average deal size has survived the
general downward affliction, recording an increase from Rs1.8 bn (US$ 41 mn) to nearer Rs.2.1
bn (US$ 48 mn).
Telecom and Pharma have been stalwarts for India Inc., with the two sectors cumulatively
responsible for almost 50% of this years M&A deal value Japanese acquisitions telecom major
NTT DoCoMo Incsentry into the country via its stake acquisition of Tata Teleservices, and Daiichi
Sankyos increased stake in Ranbaxy Laboratories Ltd have proved to be highlights of the year.
Out of the Rs.1027 bn (US$ 23 bn) that flowed through M&A deals this year, international
investment contributed 65%, whilst domestic deals accounted for 35%

Sectoral Breakup
Telecom:
This sector claimed 33% share of total deal value for the year. The largest deal was NTT
DoCoMosRs.117 bn (US$ 2.7 bn) acquisition of a 26% stake in Tata Teleservices, the single
largest deal announcedthis year. This investment by the Japanese company points towards the
confidence foreign investorshave in the Indian telecom markets growth prospects India already
has over three times the numberof Japans cellular subscribers.Following in NTT DoCoMos
footsteps was Telekom Malaysias purchase of 14.99% in Idea Cellular forRs.72.9 bn (US$ 1.7 bn).
Europe did not miss out in the party, as Telenor, the Norwegian firm, picked upa 60% stake in
Unitech wireless for Rs.61.2 bn (US$ 1.4 bn).

Pharmaceuticals and Healthcare:

The Pharmaceuticals & Healthcare sector contributed significantly to this years M&A
activity,dominated by the huge Daiichi-Ranbaxy deal. The acquisition of the entire promoter
stake (35%) inRanbaxy Laboratories by the Japanese Pharma giant Daiichi Sankyo, combined
with a preferential share issue (11% for Rs.36 bn, US$ 818 mn) and an open offer to outside
investors (for up to 20%) was alandmark acquisition in two ways. Firstly it represents the single

largest foreign direct investment into apublicly listed company in India, and secondly it whetted
the appetites of investors for further promotersellouts, something previously deemed unlikely at
best.
Frensius Kabis acquisition for Rs.8.2 bn (US$ 186 mn) of 73.27% of Dabur Pharma Ltd, with
asubsequent 17.62% stake acquired though an open offer for Rs.2.1 bn (US$ 48 mn), was the
secondheadline deal to take place in the first half of the year.
Finance:
Finance sector had a tough time of it this year. The major deal for the year was HDFC Banks
acquisitionof Centurion Bank of Punjab, priced at Rs.99.4 bn (US$ 2,3 bn). It accounted for more
than half thesector total by value, making HDFC the 7 th largest bank in India. For a single deal to
outdo the total valueof deals in H2 by over three times is rare, and signals the severity with
which the sector has been hit bythe crisis that began in the US sub-prime mortgage market.
The largest deal in broking segment was HSBCs 2-staged acquisition in IL&FS Investments Ltd.
InitiallyHSBC purchased a 73.21% stake in IL&FS for Rs.11 bn (US$ 250 mn), followed by an open
offer for anadditional 20% for Rs.2.9 bn (US$ 66 mn).
Media
The sector constituted 4.4% of the total deal value. It saw most of its action in H1, which
wasresponsible for over 80% of the total deal value. Of this percentage, the two large
acquisitions byNimesh Kampani and Walt Disney account for 62% of the years value. Nimesh
Kampanis investedRs.26 bn (US$ 591 mn) in Ushodaya Enterprises, a south India based
newspaper publisher.
Walt Disney increased its holding in UTV Software Communications via two transactions. Walt
Disneypaid Rs.8 bn (US$ 91 mn) to raise its stake from 14.9% to 32%, followed by an open offer
for another20%, valued at Rs.7 bn (US$ 160 mn). It also invested Rs.1.2 bn (US$ 27 mn) for 15%
stake in UTV GlobalBroadcasting, a subsidiary of UTV Software.
Other Sectors
There were 59 deals in the Information Technology sector worth Rs.59 bn (US$ 1.3 bn), 3.9% of
the totaldeal value. The major deal was Tata Consultancy Services Ltd acquiring a 96% stake in
Citigroup GlobalServices Ltd Citigroups India-based BPO Arm - for Rs.22 bn (US$ 500 mn).
The Power sector (4% share) saw 25 deals worth Rs.61 bn, (US$ 1.4 bn) 61% of the coming
through PEtransactions. The largest deal involved Trans-India Acquisitions Corporation that
acquired an 80% sharein Solar Semiconductor Ltd for Rs.16.5 bn (US$ 375 mn). The second
largest deal was LN Mittal andFarallon Capital acquiring 28.6% of Indiabulls Power Services for
Rs.15.8 bn (US$ 359 mn).
The Real Estate sector witnessed 22 deals, with a combined value of Rs.58 bn (US$ 1.3 bn) a
total dealvalue share of 3.9%. The big deals include Ashmore Group acquiring a 35% stake in
Sweta Estates Pvt.Ltd for Rs.24 bn (US$ 545 mn), and Indiabulls Real Estates acquisition of Dev
Property Development Plcfor Rs.10 bn (US$ 227 mn).
Top Overseas Deals
The largest international deal of the year by an Indian company came in the shape of Sterlite
Industries acquisition of Asarco for Rs.114.4 bn (US$ 2.6 bn), very closely followed by Oil and
Natural Gas Corporations acquisition of 100% of Imperial Energy, which came towards the end of

H2. ONGC paid Rs.114 bn (US$ 2.6 bn) for the UK Company, its largest overseas acquisition to
date. The transaction was not straightforward, with the falling price of crude oil making the offer
price appear extremely expensive the bid was made when the price of oil was $130 a barrel, a
long way from the sub $40 a barrel at yearend and the Imperial shareholders taking until the
last moment to agree to the sale.
Tata Motors flexed its international muscles through its successful bid to acquire Jaguar and Land
Rover from Ford Motors for Rs.94 bn (US $2,1 bn), thus buying its way into the European and US
luxury car markets. It has since paid dearly for the purchase in terms of the Indian parents
troubles financing the deal.
GMR Infrastructure Ltd made history for the Indian power sector; the Rs.42 bn (US$ 955 mn) it
paid for a50% stake in the Dutch firm, Inter Gen NV, made it the largest overseas energy
acquisition by an Indian company. Through this deal GMR hopes to gain leverage in the
international power market as well as increasing its domestic profile in a sector where India
demands investment.

Porters Model on Telecom Sector

India continues to be one of the fastest growing telecom markets in the world. Reforms
introduced bysuccessive Indian governments over the last decade have dramatically changed
the nature of telecommunications in the country. India's teledensity has improved from under 4%
in March 2001 to around 53% by the end of March 2010. Cellular telephony has emerged as the
fastest growing segment in the Indiantelecom industry. The mobile subscriber base (GSM and
CDMA combined) has grown fromunder 2 m at the end of FY00 to touch 584 m at the end of
March 2010 (average annual growthof nearly 76% during this ten year period). Tariff reduction
and decline in handset costs hashelped the segment to gain in scale. The cellular segment is
playing an important role in the

https://www.scribd.com/doc/53091392/Mergers-and-Acquisitions-in-India-2006-2010
http://gtw3.grantthornton.in/assets/DealTracker/Grant_Thornton_Dealtracker_Q1_2016.pdf