Hindustan Unilever deal largest Indian inbound M&A on record

The Unilever deal is the second largest Asia (ex-Japan) targeted transaction in 2013.

Written by PTI | New Delhi | Published: May 1, 2013 2:24:37 pm

Unilever Plc’s USD 5.4 billion bid for a 23 per cent stake in Hindustan Unilever is the largest Asia Pacific cross border inbound merger and acquisition (M&A) deal so far this year and is the fifth largest India Inbound M&A transaction on record till date.

According to global deal tracking firm Dealogic,Unilever is the the fifth largest India Inbound M&A transaction on record,the largest being,Vodafone’s 67 per cent stake acquisition in the Hutchison-Essar Ltd (HEL) from Hong Kong- based Hutchison Group in 2007.

Moreover,the Unilever deal is the second largest Asia (ex-Japan) targeted transaction in 2013,behind CP All plc’s USD 6.6-billionn takeover bid for Siam Makro pcl,announced on April 23. On April 30,Anglo-Dutch consumer goods giant Unilever Plc will spend USD 5.4 billion (over Rs 29,380 crore) to hike stake in its Indian arm Hindustan Unilever to 75 per cent through an open offer. Unilever will pay Rs 600 a share in an open offer to raise its stake in Hindustan Unilever to 75 per cent from the current 52.48 per cent. Some of the major inbound deals wherein a foreign company or its subsidiary had acquired an Indian entity in the past,includes BP’s USD 9 billion acquisition of Reliance Industries’ oil & gas assets and the acquisition of Cairn India by NRI billionaire Anil Agarwal led-Vedanta Resources for over USD 8 billion.

The United Kingdom has been one of the top acquirers of Indian assets over the years as another most prominent inbound deal also involved a UK entity Vodafone Group. Other key inbound transactions include Japanese drug major Daiichi Sankyo Company’s acquisition of majority stake in Ranbaxy Laboratories Ltd for up to USD 4.6 billion and US- based Abbott’s acquisition of Piramal Healthcare’s domestic formulation business for USD 3.72 billion.

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