November 18th, 2023
MergerDomo’s weekly Newsletter brings you the latest on M&As, JVs, Investments and noteworthy partnerships that are shaping the future of businesses in India.
This week's M&A highlights in India feature significant deals, such as -
Agritech major DeHaat, backed by Sofina and Temasek, is set to acquire Freshtrop Fruits' export business for USD 9.3 million, marking its largest acquisition to date. The deal includes the transfer of employees and infrastructure. With ambitions to build a INR 1,000-crore export business in the next 3-4 years, DeHaat expands its presence in the fruits and vegetables export sector. Currently, the company's export business contributes 10% to its revenue, expected to reach 18-20% post-acquisition, further solidifying DeHaat's position in the agritech landscape.
Read more lessProminent contenders, including an Adani group entity, JSW Cement, and ArcelorMittal Group, are vying to acquire Vadraj Cement from the ABG Shipyard group. The Bombay High Court's order to wind up Vadraj Cement, now under the Insolvency and Bankruptcy Code, has attracted potential buyers, with lenders suggesting an estimated sale between INR 2,000 and INR 2,500 crore. The move marks ArcelorMittal's potential entry into the cement sector, strategically complementing its nearby steel plant in Gujarat. Adani and JSW Cement's expansion plans align with their bid for Vadraj Cement, promising a dynamic shift in the industry landscape.
Read more lessWarburg Pincus, a global private equity giant, successfully concludes its retail-focused venture in India, netting a substantial INR 600 crore exit. The joint platform with Runwal Group aimed at developing malls, saw Runwal Group acquiring Warburg Pincus's 50% stake. The strategic move follows the platform's initiation of projects in Mumbai and Pune, now poised for independent development. With plans for large malls and community centers, the alliance marked Warburg Pincus's foray into India's retail landscape, backed by its previous successful retail ventures in Asia.
Read more lessWeWork Inc. declines a buyback proposal for its 27% stake in WeWork India, owned by the Embassy Group, as the global entity faces Chapter 11 bankruptcy. WeWork India, a profitable venture, seeks to repurchase the stake, with ongoing talks anticipating a resolution in the next one to two quarters. The rejection follows WeWork's recent bankruptcy filing. Despite the global challenges, WeWork India reports robust financials, targeting a revenue of INR 1,800 crore in FY24, and plans substantial office space expansion in the coming years.
Read more lessSiemens AG is set to acquire an 18% stake in publicly listed Siemens Ltd. India from Siemens Energy for USD 2.28 billion. This move increases Siemens' stake in the Indian subsidiary from 51% to 69%, while Siemens Energy's stake decreases from 24% to 6%. The deal, agreed at a 15% discount on the average price, accelerates the separation of Siemens and Siemens Energy in India. Additionally, Siemens and Siemens Energy have agreed on indirect financial measures worth USD 1.08 billion to facilitate guarantees and strengthen Siemens Energy's business development.
Read more lessI Squared Capital is in the final stages of acquiring a substantial 65% stake in American Tower Corp's (ATC) India unit, ATC Telecom Infrastructure Pvt Ltd (ATC-TIPL), for an estimated enterprise value of USD 1.5- USD 1.75 billion. This follows ATC's decision to divest a minimum of 51% in ATC-TIPL, with ATC retaining a residual stake. The deal, facilitated by Deutsche Bank, is expected to be formally announced this month or in early December. ATC had explored this strategic move amid challenging market conditions, particularly with Vi's financial struggles impacting tenancy revenues.
Read more lessPharmaceutical giant Cipla has unveiled plans to divest its 51.18% majority stake in Ugandan subsidiary Cipla Quality Chemical Industries Limited (CQCIL) to Africa Capitalworks SSA, marking a strategic shift. Valued at USD 25-30 million, this move will sever CQCIL's subsidiary status. In FY22, CQCIL contributed 2.57% (USD 75.21 million) to Cipla's consolidated revenue. With shares trading higher post-announcement, the stake sale signals a key decision for Cipla's portfolio realignment, breaking a three-day downtrend.
Read more lessThe Indian government, aiming to sell a majority stake in IDBI Bank, anticipates the deal won't conclude by March 2024. Initial bids from Kotak Mahindra Bank, CSB Bank, and Emirates NBD have been vetted by the RBI. The delay jeopardizes the government's divestment target of INR 51,000 crore for FY24. Tuhin Kanta Pandey, DIPAM Secretary, notes the ongoing vetting process and compliance criteria. The sale, seen as a step toward privatizing state-run banks, faces challenges, impacting revenue-raising measures amid the government's focus on impending national elections.
Read more lessUsha Martin, a prominent wire ropes manufacturer, forms a step-down joint venture, Brunton Wire Ropes Industrial Company Ltd, in Saudi Arabia. This subsidiary, initiated by Usha Martin's existing entity, Brunton Wire Ropes FZCo. (BWR), will focus on the distribution, manufacture, sale, and application of wire ropes and allied products. With Usha Martin's global footprint, including facilities in Ranchi, Hoshiarpur, Dubai, Bangkok, and the UK, the move enhances the company's international presence in the wire ropes industry. Two directors and a promoter from Usha Martin hold key roles in BWR, reinforcing strategic governance.
Read more lessThis week's M&A news reflects the dynamic nature of India's corporate landscape, featuring diverse transactions in the Banking, Retails, Pharmaceuticals, Healthcare, Telecommunications, Infrastructure, Technology ,Manufacturing, Real Estate, and Agriculture sectors. Stay updated on India's M&A developments as we continue to bring you the latest news and insights.
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