India China

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COMPARE ACQUISITIONS BY INDIAN & CHINESE FIRMS ABROAD |

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COMPARE ACQUISITIONS BY INDIAN & CHINESE FIRMS ABROAD |

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COMPARE ACQUISITIONS BY INDIAN & CHINESE FIRMS ABROAD

If one looks at cross-border activity, China has yet to become active in acquisitions to-date, although there is indications this is starting to change. 

Big acquisitions by Chinese businesses include Lenovo’s takeover of IBM’s PC business and more recently the Chinese acquisition of an interest in Blackstone, which is a different twist on things.

On the other hand, Indian companies have been on a tear building up international assets and expanding throughout the world.  Recent examples:

* Tata Steel’s $13.6 Billion Acquisition of Corus

* Mittal Steel’s even larger $31 billion purchase of Arcelor

* Tata Group’s acquisition of U.S.-based Glaceau, a health drinks and water manufacturer, for US$677 million

* Tata Tea’s purchase of a controlling stake in Britain’s Tetley for US$407 million

* India’s wind energy firm Suzlon’s acquisition of Hansent Transmission for $324 million

* Infosys’s $28 million acquisition from Phillips of BPO centers in Chennai; Lodz, Poland and Bangkok, Thailand.

* Indian Phamaceutical giant Ranbaxy’s acquisition of Romania’s Terapia

* Ballarpur Industries (an Indian Paper and Pulp company) and JP Morgan’s acquisition of Malaysia’s Sabah Forest Industries

As can be seen from the above examples, Indian companies are actively becoming world players.  Chinese companies really can’t match the breadth or the depth of acquisitions and this is giving Indian companies a lead over their Chinese counterparts.    

The major differnces between acquisitions of Indian and Chinese companies are :-

• Indian companies have learning new skills and capabilities from the target as a strong primary deal objective. In contrast, Chinese companies place greater emphasis on reducing costs and building...