Clearwater predicts Indian summer for corporate deals market

Date

Specialists from Clearwater Corporate Finance will visit India as part of a global taskforce aiming to create greater merger and acquisition activity between the sub-continent and the West.

Clearwater partner Andy Moore and head of research Constantine Biller will take part in a two-day trade mission in New Delhi.

India is the sixth largest economy in the world, as well as one of the fastest growing, with the value of trade with the UK rising by some 24 per cent, from £1.8 billion in the first quarter of 2004 to almost £2.4 billion in the corresponding period in 2005.

Clearwater believes this means there is enormous potential for cross-border corporate finance transactions.

The firm has already played a key role in helping Indian-based automotive group Amtek Auto to acquire leading German machining company, Zelter. Amtek, a leading automotive component manufacturer with operations in India, the USA and Europe, is keen to strengthen its position in mainland Europe.

The purchase of Zelter, a specialist turbo charger machining company with sales of more than E100 million, represented a further move to bolster Amtek’s manufacturing presence outside of India, increasing global revenues to about $700 million.

Other recent deals involving Western and Indian businesses include the £80 million acquisition by Indian tea manufacturer Apeejay Surrendra Group of Typhoo Tea from UK-based Premier Foods; the $39 million purchase of UK software consultancy Citisoft by Satyam Computer Services, the Indian IT solutions and software developer; and the acquisition for $8.6 million of Anglo-American equity research company Irevna by Crisil, the Indian credit rating services business.

The visit to New Delhi, from 15 to 17 January, is being hosted by Asean Focus Group. Delegates from the UK, US, Germany, Switzerland and Denmark will meet representatives from a number of major Indian companies seeking to acquire businesses in Europe and the US.

“We will also be looking at opportunities for investment in India, covering a range of sectors including engineering, pharmaceuticals, and IT,” explained Andy Moore.

A cocktail party at the Australian Ambassador’s home in New Delhi will bring together the Indian companies the delegates have met, Indian officials, and consular staff from the countries represented by the delegates.

“This major event at the ambassador’s home will help confirm to the Indian commercial community that we are a well established, bona fide organisation, enthusiastic to generate solid and fruitful partnerships,” added Moore.