Is India Inc. justified in going for big-ticket
buy-outs across the globe?
When Anglo-Dutch steelmaker Corus accepted the $ 13 billion takeover
bid from India based
Tata Steel, questions were raised around the prices and rationale.
Many analysts and
industry experts felt the buy-out price to be highly unreasonable
and inflated. But, the largest
Indian deal ever, enabled the 56th biggest steel producer, Tata Steel,
to leap-frog from the
56th to the 5th position in the global steel sweepstakes. Steel giant
Mittal Steels buy-out of
Arcelor for $ 32.2 billion redefined the industry further. India-born
steel tycoon L. N. Mittal
portrayed the ambitions of new age companies aspiring to achieve global
Its not just steel. This trend is evident in the pharmaceuticals,
consumer goods, chemicals,
IT & ITeS, automotive, and hospitality sectors to name a few.
Would this over-exuberance
lead to stormy days for these companies, or are these initial indications
of consolidation and
signs of emerging giants?
Evalueserve and Greenfield Online conducted a survey among 100 top
Indian executives to
understand their opinions on the recent mergers and acquisitions (M&A)
organizations. Aimed at senior finance and strategy executives and
M&A analysts, the
survey results throw up some interesting insights:
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