On 20 October 2006 the board of directors of Anglo-Dutch steelmaker Corus accepted a $7.6 billion takeover bid from Tata Steel, the Indian steel company, at 455 pence per share of Corus. The following months saw a lot of negotiations from both sides of the deal. Tata Steel’s bid to acquire Corus Group was challenged by CSN, the Brazilian steel maker. Finally, on January 30, 2007, Tata Steel purchased a 100% stake in the Corus Group at 608 pence per share in an all cash deal, cumulatively valued at USD 12.04 Billion.
The deal is the largest Indian takeover of a foreign companyand made Tata Steel the world’s fifth-largest steel group. Hindalco, through its wholly owned subsidiary AV Metals Inc., acquired 75,415,536 common shares of Novelis, representing 100 percent of the issued and outstanding common shares. Immediately after closing, AV Metals Inc. transferred the common shares of Novelis to its wholly owned subsidiary AV Aluminum Inc. The day after Hindalco announced the acquisition its stock fell by 13% resulting in a US$600 million drop in market capitalisation.
Shareholders criticised the deal but K.M. Birla responded that he had offered a fair price for the company and stated, “When you are acquiring a world leader you will have to pay a premium.” JSW Steel had acquired 41 per cent stake in debt-ridden Ispat Industries from Pramod and Vinod Mittal,in December 2010 for about Rs 2,157 crore. Ispat Industries was subsequently named as JSW Ispat. Later, it increased its stake to 46.75 per cent in JSW Ispat and is the single-largest shareholder of the company.
The merger of JSW Ispat Steel into JSW Steel has been approved by the Bombay High Court may 2013, paving the way for the company to become second largest steel producer in the country after SAIL. Global corporate interest in India’s emerging consumer class hit another spike in April 2007 when the Foreign Investment Promotion Board (FIPB) approved a proposal from the London-based mobile telecommunications provider Vodafone Group to buy a controlling stake in domestic cellphone operator Hutchison Essar.
Vodafone had acquired a 52% interest in Hutchison Essar from the Hong Kong-based Hutchison Telecommunications International (HTIL) for about US$10.83 billion.Not only was it one of India’s largest foreign takeovers, it also attracted an unprecedented array of blue-chip legal teams from India and abroad. Bharti entered into a legally binding definitive agreement with Zain Group (“Zain”) toacquire the sale of 100% of Zain Africa BV, its African business excluding itsoperations in Morocco and Sudan, based on an enterprise valuation of USD 10.7 billion. Under the agreement, Bharti will acquire Zain’s African mobile servicesoperations in 15 countries with a total customer base of over 42 million.
Japanese Telecom giant NTT DoCoMo acquired 26 per cent stake in TataTeleservices. With a subscriber base of 25 million in 20 circles, the company paid Rs20107 per subscriber to acquire the stakeMicrosoft Corporation and Nokia Corporation today announced that the Boards of Directors for both companies have decided to enter into a transaction whereby Microsoft will purchase substantially all of Nokia’s Devices & Services business, license Nokia’s patents, and license and use Nokia’s mapping services.
Under the terms of the agreement, Microsoft will pay EUR 3.79 billion to purchase substantially all of Nokia’s Devices & Services business, and EUR 1.65 billion to license Nokia’s patents, for a total transaction price of EUR 5.44 billion in cash. On August 15, Google announced an agreement to acquire Motorola Mobility, based in Libertyville, Illinois, for $40 per share. Both companies’ boards of directors have approved the deal.
The Canadian-led consortium put in its $9 a share bid for BlackBerry on 23rd sept 2013, arguing that the troubled company would have better chances as a private entity, away from Wall Street’s constant gaze.
The company pioneered mobile email communications but has lost ground to Apple and other snazzier rivals, Abbott May 21 2010announced a definitive agreement with Piramal Healthcare Limited to acquire full ownership of Piramal’s Healthcare Solutions business (Domestic Formulations), a leader in the Indian branded generics market, for an up-front payment of $2.12 billion, plus $400 million annually for the next four years, giving Abbott the No.1 position in the Indian pharmaceutical market.
In June 2008, Japan’s Daiichi Sankyo Company took a majority (50.1%) stake in Ranbaxy, with a deal valued at about US$4.6 billion. Ranbaxy’s Malvinder Singh remained as CEO after the transaction. On 26 jan 2009 pfizer acquired wyeth at 68$ with mission to become a prier bio pharmaceutical company in the world.