M&A Magazine

In one of the largest foreign investments ever to be made in India, Reliance Industries Ltd ( RIL ) has decided to sell 20% stake in its oil business to Saudi Aramco , the world’s largest oil company producing one in every eight barrels of crude oil globally. The deal value is estimated to be around $15 billion --- at an enterprise value of $75 billion -- and money received by RIL will be used partly to pare the company’s debt. This is the fourth divestment announced by the company this year. Also, RIL had signed a pact with BP Plc to form a joint venture in the petroleum retailing business, in which RIL will hold 51% stake and the company and will get Rs 7,000 crore from BP Plc. These two deals further outline RIL’s strategy that it wants to move into the technology sector as a part of the company’s efforts to expand its consumer-facing businesses. Moreover, these two deals, and another one signed earlier to sell stake in its telecom tower arm to Canadian investment firm Brookf...

At a time when Indian individuals are increasingly investing in mutual funds to build long-term corpus and assets under management (AUM) of the industry are growing rapidly, there are ownership changes happening in India mutual fund industry. With DSP Group -- headed by Hemendra Kothari -- buying out BlackRock’s 40% stake in joint venture , there has been over 25 ownership changes in India’s mutual fund companies in the past 10 years. These range from foreign companies selling stake to local companies, to foreigners buying stakes in home-grown ones. BlackRock saga BlackRock is the world's largest asset managers and the joint venture with DSP group, a homegrown company, had become the ninth largest mutual fund company in the country. BlackRock had agreed to sell its 40 per cent interest in DSP BlackRock, which in total, manages assets of over Rs 1.1 lakh crore. Both the companies did not disclose the details of the deal. In fact, initially BlackRock was in talks with DSP for ...

SONA KOYO STEERING SYSTEMS LIMITED (SKSS) is a manufacturer of steering systems in the passenger car and utility vehicle market in India, catering to passenger cars, utility vehicles and light commercial vehicles. SKSS has operations across India through its 7 plants (2 plants in Gurgaon, 3 plants in Dharuhera, 1 plant in Chennai and 1 in Sanand). The customers of the SKSSL include Maruti Suzuki and several global automakers, including Toyota, Tata Motors, Mahindra & Mahindra, Honda, Renault Nissan and Ford. The Equity Shares of the SKSS are listed on the BSE and NSE. Currently, the company is also engaged in business of column type electric power steering through joint venture with JTEKT and business of JKT for column type EPS, Manual Steering through joint Venture with Fuji Kiko. JTEKT Corporation (JTEKT) is a limited liability listed company under the laws of Japan. The company focuses on four major product technologies: bearings, steering systems, driveline components a...

The banking industry is largely fragmented in India with more than half of the commercial banks being state-run entities. Also amongst them, only two of them figure among the world’s 100 largest banks. Besides, there have not been many mergers in Indian banking space and the merger of ING Vysya Bank with Kotak Mahindra Bank is one of the major deals since private sector leader ICICI Bank’s takeover of Bank of Rajasthan about four years ago and Axis Bank acquiring erstwhile UTI Bank.  The Kotak Mahindra and ING Vysya,   both are private sector banks, run by professional managers, and similar in size with a degree of commonality in business and risk approaches. The merger of ING Vysya Bank with Kotak Mahindra Bank is one of the major deals in the private sector banking space The Deal: The proposed merger is an all-stock merger. 1000 shares of Rs.10 each of ING Vysya will receive 725 shares of Rs.5 each of Kotak Mahindra Bank. This exchange ratio indicates an i...