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Walmart buys Flipkart: 11 biggest M&As involving Indian firms

Walmart buys Flipkart: 11 biggest M&As involving Indian firms
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In 2017, consolidation was the buzzword with over 1,000 mergers and acquisitions -- the highest annual deal count in well over a decade in India. And, 2018 is poised to be yet another good year for such transactions. Here's a look at some major deals in the recent past
Walmart buys Flipkart: 11 biggest M&As involving Indian firms
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Vodafone-Idea deal: $23 bn
British telecom major Vodafone and Aditya Birla group-run Idea Cellular announced their merger in 2017. Once merged, it will be the largest mobile operator by customer and revenue market share. Vodafone will have a 45.1 per cent stake in the merged entity, while Kumar Mangalam Birla-led Idea will 26 per cent. The rest will be owned by public shareholders.
Walmart buys Flipkart: 11 biggest M&As involving Indian firms
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Flipkart-Walmart deal: $16 bn
US retail giant Walmart Inc. will buy a 77% stake in India's largest online retailer Flipkart for $16 billion -- the biggest inbound acquisition in India ever. The deal, which values the 11-year old homegrown e-commerce firm at $20.8 billion, draws significance, given that most M&A deals involving Indian companies were in non-technology sectors - primarily oil and gas, steel and metals, and telecommunication.
Walmart buys Flipkart: 11 biggest M&As involving Indian firms
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Indus Towers-Bharti Infratel deal: $14.6 bn
Bharti Airtel merged its listed tower arm with Indus Towers Ltd to create the second largest telecom tower infrastructure company, after Beijing-owned China Tower Corp. The combined entity will have a 33 per cent share in the Indian market with 163,000 towers.
Bharti Infratel, and Vodafone India Ltd. own 42 per cent, each, in Indus Towers, while Idea Cellular Ltd holds a 11.15 per cent stake. The remaining 4.85 per cent is held by US-based private equity firm Providence.

Walmart buys Flipkart: 11 biggest M&As involving Indian firms
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Rosneft-Essar Oil: $13 bn
Russia's energy giant Rosneft and United Capital Partners acquired a 98.26 per cent in Essar Oil for $13 bn in August 2017, making it the largest FDI into the country. With this, the entity will gain control over a 20-million tonne annual oil refinery and over 3,500 petrol pumps.
Walmart buys Flipkart: 11 biggest M&As involving Indian firms
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Corus-Tata Steel: $12.9 bn
Tata Steel agreed to buy Anglo-Dutch steelmaker Corus Group for about $8 billion in 2007. The deal's profitability was hit by the slowdown of 2007-08. Tata Steel Europe, the merged entity, reported an operating loss of Rs 339 crore in 2015-16, following which Tata reached an agreement to merge its European steel business with German steel manufacturer Thyssenkrupp in September 2017. The joint venture will be completed by 2018-end.

Walmart buys Flipkart: 11 biggest M&As involving Indian firms
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Hutch/Essar-Vodafone: $11.1 bn
In 2007, Vodafone had entered into the Indian telecom market with a bang after purchasing a controlling stake in Hutchison Essar. Vodafone acquired a 52 per cent stake for $11.1 billion, which was one of the biggest deal in the sector, back then.

Walmart buys Flipkart: 11 biggest M&As involving Indian firms
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Zain Africa-Bharti Airtel: $10.7 bn
Bharti Airtel had acquired the African operations of Zain or Mobile Telecommunications Company for an enterprise value of $10.7 billion in 2010. The acquisition gave Bharti Airtel a total customer base of 180 million. Over the past few years, Airtel has tried capturing the African market through local deals. It has made three small-ticket acquisitions in Uganda, Congo Brazzaville and Kenya. Now, Bharti Airtel is reportedly planning to raise $1.5 billion by diluting a 25% stake after listing the holding company for Africa operations.
Walmart buys Flipkart: 11 biggest M&As involving Indian firms
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Cairn India-Vedanta: $8.36 bn
The Vedanta-Cairn India merger helped form a $15.6-billion entity by market cap. The deal also helps Vedanta consolidate its position as one of the world's largest diversified natural resources companies. Edinburgh-based Cairn Energy will have a 5 per cent holding in Vedanta after the merger of Cairn India, besides four preferential shares in the merged entity.

Walmart buys Flipkart: 11 biggest M&As involving Indian firms
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Reliance KG-D6 & BP Plc: $7.2 bn
UK-based BP Plc had picked up a 30 per cent stake in 23 oil and gas blocks of Reliance Industries for $7.2 billion in 2011. Recently, Reliance Industries declared that it plans to shut oil and gas production at its main fields in KG-D6 block.


Walmart buys Flipkart: 11 biggest M&As involving Indian firms
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Ranbaxy-Daiichi Sankyo: $4.6 bn
Daiichi Sankyo, Japan's third-largest pharmaceutical company, bought a 34.82 per cent stake in Ranbaxy in 2008 for $4.6 billion. However, problems cropped up after Ranbaxy's plants came under scrutiny by the US Food and Drug Administration. Daiichi has accused the Singh brothers of misrepresenting facts when it acquired the firm. Later in 2014, Sun Pharma acquired Ranbaxy.


Walmart buys Flipkart: 11 biggest M&As involving Indian firms
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Tata Motors-Jaguar Land Rover: $2.3 bn
JLR was acquired by Tata Motors in June 2008 for $2.3 billion. The British brand has been contributing over 75% of Tata Motors' turnover in recent quarters. In November 2017, the company had announced that its profit for the second quarter of 2017 grew three-fold on the back of higher sales at JLR.