Source : Business Times :Thursday, September 16, 2010, 07.12 PM
MUMBAI: Standard Chartered plc (StanChart), ranked 14th among merger advisers in India last year, has climbed to number two by financing takeovers in the world's second fastest-growing major market for acquisitions.
The UK bank, the first foreign company to sell shares in India, has advised on US$22 billion (RM69 billion) of deals, second only to Morgan Stanley, in the nation's busiest year for takeovers since 2007, according to data compiled by Bloomberg.
Eight of the 10 largest acquisitions in India this year are cash transactions, compared with only one of the top 10 global deals, underscoring the need to provide financing to win clients. StanChart funded the nation's two biggest takeovers, by billionaires Anil Agarwal and Sunil Mittal, helping to cement India as the lender's most profitable market.
"In India, M&A is to a great extent dependant on balance sheet support," Abizer Diwanji, head of financial services at KPMG India, said in an interview. "You will see more and more banks putting their balance sheet to work."
Indian companies led by Mittal's Bharti Airtel Ltd have announced US$58.4 billion (RM182 billion) of transactions this year, on course to surpass 2007's record US$69.2 billion (RM216 billion), driven by cross-border takeovers that are also set for an all-time high.
The UK bank, the first foreign company to sell shares in India, has advised on US$22 billion (RM69 billion) of deals, second only to Morgan Stanley, in the nation's busiest year for takeovers since 2007, according to data compiled by Bloomberg.
Eight of the 10 largest acquisitions in India this year are cash transactions, compared with only one of the top 10 global deals, underscoring the need to provide financing to win clients. StanChart funded the nation's two biggest takeovers, by billionaires Anil Agarwal and Sunil Mittal, helping to cement India as the lender's most profitable market.
"In India, M&A is to a great extent dependant on balance sheet support," Abizer Diwanji, head of financial services at KPMG India, said in an interview. "You will see more and more banks putting their balance sheet to work."
The tripling in deal volume from last year makes India the fastest growing after Mexico among the Group of 20 nations, the data show.
StanChart overtook Goldman Sachs Group Inc and JPMorgan Chase & Co, the two largest global takeover advisers, in India this year. New York-based Goldman Sachs is ranked No. 10 in the Asian nation, while JPMorgan is 12th.
India's acquisition spree contrasts with a slowdown in global deals. Mergers worldwide are on course to decline for a third year, with US$1.35 trillion (RM4.2 trillion) of transactions, down 56 per cent from the first eight months of 2007.
StanChart overtook Goldman Sachs Group Inc and JPMorgan Chase & Co, the two largest global takeover advisers, in India this year. New York-based Goldman Sachs is ranked No. 10 in the Asian nation, while JPMorgan is 12th.
India's acquisition spree contrasts with a slowdown in global deals. Mergers worldwide are on course to decline for a third year, with US$1.35 trillion (RM4.2 trillion) of transactions, down 56 per cent from the first eight months of 2007.
In the US, the world's largest market, volumes dropped 63 per cent to US$577 billion (RM1.8 trillion), while Europe saw a 68 per cent decline to US$489 billion (RM1.52 trillion). - Bloomber
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