India a desirable market

India is one of the biggest countries in the world, and that’s why big companies and firms from every part of the world are trying to merge into this market with different corporative strategies like acquisitions and merging. It is important to say that acquisition and merging are completely different strategies and not the same as many people think; The main difference is that “Acquisition is when a new company takes over another and clearly establishes itself as the new owner, and a merger happens when two firms agree to go forward as a single new company rather than remain separately owned and operated” (taken from http://en.wikipedia.org/wiki/Mergers_and_acquisitions). Althoyght both strategies are very used, its more common to see an acquisition than a merging.

Image taken from http://www.pharmainfo.net/luckypharmacist/mergers-and-acquisitions-trends-pharma-sector

In the last 2 decades India has been a country where merging and acquisitions have incredible grown, as a consequence of the government’s politics that have been implemented. There are perfect example of acquisitions and mergers in India, big companies like telecom, finance, FMCG, construction materials and automobile have entered to the Indian market by adquiring companies or by merging.

Here are the main acquisitions and mergers that have entered to India:
“Hindalco acquired Canada based Novelis. The deal involved transaction of $5,982 million. Tata Steel acquired Corus Group plc. The acquisition deal amounted to $12,000 million. Dr. Reddy's Labs acquired Betapharm through a deal worth of $597 million.Ranbaxy Labs acquired Terapia SA. The deal amounted to $324 million. Suzlon Energy acquired Hansen Group through a deal of $565 million. The acquisition of Daewoo Electronics Corp. by Videocon involved transaction of $729 million. HPCL acquired Kenya Petroleum Refinery Ltd.. The deal amounted to $500 million. VSNL acquired Teleglobe through a deal of $239 million.”(Taken from http://www.economywatch.com/mergers-acquisitions/india.html)