The Hindu Business Line : `More overseas acquisitions by domestic cos in July'

EIGHT domestic firms acquired overseas firms while only two overseas firms could lay their hands on Indian companies of the 10 deals of mergers and acquisitions (M&As) involving domestic firms in the month of July, according to the Associated Chambers of Commerce and Industry of India (Assocham) Eco Pulse Study.

The ratio of Indian companies' overseas acquisition to foreign firms' acquisition of domestic firms has risen sharply from 1.3:1 during the first quarter of current year to 4:1 during July 2005.

While sectors such as media, telecom, automobile, hotels have started showing activity in the M&A space, the four sectors IT, banking and insurance, pharma and FMCG still top the chart with more than 50 per cent of the acquisition deals occurring in these sectors.

Pharmaceutical companies struck some of the major M&A deals recently with Matrix Laboratories acquiring European firm Docpharma, and Sun Pharma acquiring another European firm Valeant's manufacturing business.

The motive behind Indian companies acquiring overseas firms is to tap overseas customers and markets, strengthen geographic reach and enhance intellectual property portfolio in order to survive in the post-patent era, said Mr M.K. Sanghi, President, Assocham.

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