Britain, a favourite business destination of Indian businesses
August 2, 2008
According to Grant Thornton’s newly launched India Watch research, which is engaged in monitoring the India-Britain business relationship through both cross-border M&A trends as well as performance of the Indian companies on the London Stock Exchange, Indian businessmen are spending more on buying business in Britain compared to offshore business acquisition in other countries.
The Indian acquisitions amounted to ₤930 million in the US, ₤561 in the Netherlands, whereas after acquiring Jaugar and Rover by Tata Motors, the total acquisition value was in the region of ₤1.52 billion in the UK in the first half of the year. However, if one goes by the number of companies acquired, US remained number one destination with 41 American business bought over compared to 20 British companies in the first half of 2008.
Stock broker firm Hichens Harrison & Co Pic was purchased by India’s Reliegare Capital Markets Ltd for ₤50 million, which demonstrates the diversity of British firms catching Indian interest. The other factor contributing towards Indian companies’ acquisition spree is the economic growth resulting in sufficient cash at hands to be used fruitfully.
Mr. Anuj Chande, head of Grant Thornton’s South Asia Group, said “The rising interest was owing to a combination of historical ties, strong cross-border business links and infrastructure and a very compatible business ethos. Indian businesses are looking to buy brands and established distribution networks.”
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