Indian acquisitions on the rise, says Grant Thornton
There was a sharp increase in Indian takeovers in the UK last year, according to merger and acquisition statistics from accountancy firm Grant Thornton. Indian companies announced 24 deals targeting UK assets valued at £571m last year.
According to Grant Thornton’s international business report, about 16 per cent of privately held businesses (PHBs) in India plan to acquire businesses abroad in the next three years.
In 2009, just nine per cent of Indian respondents had said they were planning acquisitions abroad. In the same year, Indian companies announced just nine M&A deals targeting UK assets worth £52.28m.
Ian Wilson, head of Grant Thornton’s corporate finance team in the Midlands, said: "There has been an encouraging rebound of Indian takeovers of UK targets and acquisitive Indian companies will be further encouraged by reports that Jaguar Land Rover is making a strong recovery under the stewardship of Tata Motors.
"An increasing number of Indian companies are interested in acquiring UK assets, which are particularly attractive given that Sterling hit a five-year low against the Indian Rupee (INR) last May and continues to trade 18 per cent below its five-year-high of INR 88.50. In January alone we were approached by five acquisitive companies from India asking if we could find suitable targets in the UK."
