54% OF INDIAN FIRMS KEEN TO ACQUIRE COMPANIES IN 12 MONTHS
Deepti Chaudhary, Bangalore
Mint
After lying low for nearly two years, Indian companies are once again hunting for acquisitions, a new study shows. Audit firm Ernst and Young’s (E&Y) April study measuring confidence in the global economy shows that in India, 54% of the companies surveyed have said they are likely or highly likely to acquire other companies in the next 12 months. That’s nearly double the number of firms that were considering acquisitions six months ago. E&Y surveyed 58 mid- to top-tier companies in India for its study.
Confidence is growing in the Indian mergers and acquisitions (M&As) space, with the focus shifting away from divestments, says E&Y’s latest Capital Confidence Barometer. M&As by Indian companies fell sharply during the downturn and are still to recover. The E&Y study points to a return of confidence among local firms as the business environment improves.
However, Indian firms say they cannot afford to avoid overseas buys. Sasken’s Mody, for instance, says Europe contributes 30-35% to revenue and the firm needed a foothold there. “Nokia is a key customer and it would not have been with us if we had not acquired the Finnish firm.”
JINDALS PICK UP 10% IN DESCON
Sambit Saha, Calcutta
The Telegraph
JSW Group has bought into city-based IT firm Descon by scooping up a 10 percent stake held by DPSC Ltd in back-to-back deals that turned one-time fierce competitors into close collaborators. The $3.7-billion group, having interests in steel, power and infrastructure, is also in talks with three other shareholders of Descon to take management control.
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