Top Stories
EPFO approves RCap-Nippon Life deal
The Central Board of Trustees (CBT) of the EPFO (Employees' Provident Fund Organisation) has approved the proposal of Reliance Capital Asset Management (RCAML) to sell 26% stake to Japanese insurer Nippon Life. The deal is worth around Rs. 14.5 billion.
Reliance Capital is one of the four fund managers of the EPFO managing 20% of its corpus. The approval was needed because according to the contract with the EPFO, its fund managers cannot do mergers, acquisitions etc without the approval of the Trust.
CBT is the highest decision making body of the Employees' Provident Fund Organisation's (EPFO) and is headed by the Labour Minister.
Competition Commission of India, SEBI (Securities and Exchange Board of India), Reserve Bank of India and Pension Fund Regulatory and Development Authority among others have already approved the deal.
Indian Hotels plans to increase stake in Orient Express Hotels: reports
The Tata group’s Indian Hotels Company is planning to forge a partnership with Orient Express Hotels (OEH), according to reports.
Reports stated that IHCL owns 6.9% in OEH, which has a chain of luxury hotels and trains across many countries and has been pursuing a partnership with OEH, without any headway so far.
At the 111th annual general meeting of the company, IHCL Chairman Ratan Tata had reportedly said that there is a great strategic opportunity for us, though there is nothing we can say or do.IHCL had been scouting for opportunities to shore up its stake in OEH, says report.
In Focus Stories
H1 M&A deals hit 3-year low of US$24.6bn: Grant Thornton
The first half of 2012 witnessed M&A deals worth US$24.60bn in India, which has been the lowest in the last three years and down 19% compared to the first six months of 2011, says deal tracker Grant Thornton.
"Although the Eurozone is less optimistic about the growth prospects of their own economies, a large proportion of businesses within Europe are actively seeking opportunities abroad and expanding into higher growth markets such as the BRIC economies," says Munesh Khanna, Senior Partner, M&A, Grant Thornton.
The total value of deals (M&A and PE) in the first half of 2012 stood at US$28.3bn, while the average deal size for the January to June 2012 was US$75.36mn and US$17.24mn, for M&A and PE, respectively. There were 544 deals in first half of 2012 (M&A and PE).
Internal mergers and restructuring deals have gained momentum over the years. The first six months of 2012 have seen a number of such large deals like the Sesa Goa-Vedanta transaction, Tech Mahindra-Satyam Computer merger.
The long awaited acquisition of RBS' retail and commercial banking business in India by HSBC also took place during this period. Other key deals in the January to June period of 2012 were Piramal Group's takeover of Decision Resources Group, and Mitsui Sumitomo Insurance's investment in Max New York Life Insurance.
The private equity deal value for the January to June period was US$3.8bn, which was ~45% down in value terms compared to the first half of last year.
The key PE deals in the first half of 2012 included Morgan Stanley's investment in Continuum Energy, Accel and Tiger Global's investment in Flipkart and Temasek's investment into Godrej Consumer.
Domestic News
CCI approves Nestle’s acquisition of Pfizer nutrition biz: reports
The Competition Commission of India has approved the proposed combination of global FMCG major, Nestle SA, with pharmaceutical major, Pfizer, according to reports.
Reports stated that the proposed combination relates to the acquisition of the global nutrition business of Pfizer by Nestle in April this year.
Nestle had acquired the infant nutrition and nutritional supplement products, maternal supplements and adult nutrition products for $11.85 bn, says report.
LKP Merchant Finance sells Kingfisher shares for Rs. 50mn: report
LKP Merchant Financing has sold another 53.41 lakh shares of Kingfisher Airlines for nearly Rs. 50mn, according to reports.
Reports stated that LKP Merchant Financing offloaded 53,41,472 shares of Kingfisher Airlines for Rs. 9.04 apiece, valuing the deal at Rs. 48.2mn.
In last month alone, LKP Merchant Financing sold around 3 crore shares of Kingfisher Airlines.
HCL Infosystems buys out remaining 40% stake in HCLI MEA
HCL Infosystems Ltd., India’s premier hardware, services and ICT Systems Integration and Distribution Company, today announced the buyout of the remaining 40% stake held by the NTS Group in HCL Infosystems MEA. HCL Infosystems Ltd., through its wholly owned subsidiary HCL Insys Pte. Ltd., Singapore has bought the stake in HCL Infosystems MEA FZCo. Following the transfer of shares, the FZCo shall be converted into a FZE (free zone establishment) owned solely by HCL Insys Pte. Ltd., Singapore. HCL Infosystems MEA FZE now becomes a wholly owned subsidiary of HCL Infosystems Ltd.
NTS Holding BVI was a leading IT services and Solutions Company based in Dubai. HCL Infosystems had earlier acquired 60% of NTS Group in 2010 to expand its global footprint in the Middle East and African market with direct operations to address the system integration and services need in these regions.
CRH plans to acquire 51% stake in JP Associates: reports
CRH, the $13.7-bn Irish building materials group, is planning is to acquire 51% stake in Jaiprakash Associates' cement operations in Gujarat, according to reports.
Reports said that the deal is expected to value at Rs. 42bn.
The deal will help Jaiprakash Associates pare its debt by about Rs. 18bn and will also infuse fresh cash of about Rs. 12bn in the company, says report.
Standard Chartered buys stake in wind farm
Global News
Samsung not mulling takeover of troubled RIM
South Korea's Samsung Electronics Co has not considered acquiring Research In Motion (RIM) or licensing the struggling BlackBerry phone maker's new mobile operating system, according to reports.
Reports state that a lack of support from potential partners such as Samsung could mean more trouble for RIM, which is seeking various options to turn around its sagging fortunes.
There are reports that RIM plans to use its new operating system, known as BB10, in a next-generation line of BlackBerry smart phones expected to launch early next year.
Shares of RIM had risen by over 5% early on Wednesday after a leading analyst said that the Canadian company may license the BlackBerry 10 operating system to Samsung.
RIM's shares are down a whopping 80% since the beginning of 2011.
Carlyle Group to buy asset manager TCW: report
The Carlyle Group is planning to buy asset manager TCW Group, according to reports. Reports stated that TCW is majority-owned by France's Société Générale and has about $127 billion in assets under management.
IAG plans to acquire stake in American Airlines: reports
The owner of British Airways and Spanish airline Iberia is considering taking a stake in American Airlines, according to reports.
IAG CEO Willie Walsh said that a small stake in American could reinforce American's participation in the Oneworld alliance which includes British Airways, Iberia, Japan Airlines and Qantas.
British Airways has a joint venture with American on North Atlantic flights, report says.
Home Depot agrees to acquire US Home Systems
The Home Depot and U.S. Home Systems, Inc. announced a definitive merger agreement for The Home Depot to acquire USHS. USHS, based in Irving, Texas, is currently an exclusive provider of kitchen and bath refacing products and services as well as closet and garage organizational systems to The Home Depot.
Under the terms of the agreement, The Home Depot will acquire USHS for US$12.50 per share in cash which represents an approximately 38% premium over USHS' closing price on The NASDAQ Global Market on August 6, 2012. The agreement was unanimously approved by USHS's board of directors.
The acquisition is expected to close by the end of the calendar year, and is subject to approval by USHS stockholders, applicable regulatory approval and customary closing conditions.
"The Home Depot has had a long-standing relationship with USHS. By formally bringing USHS into The Home Depot family, we expect to further enhance our customers' home service experience," said Kevin Hofmann, senior vice president-Home Services, The Home Depot.
IBM may be interested in RIM's enterprise-services unit
Thai firm challenges Heineken's bid for APB: reports
Invesco to take control of JJB Sports: report
Digia to acquire Qt from Nokia
Aegis Media acquires Communicate 2