The merger of Reliance Communications with Aircel adds to the list of industries witnessing significant consolidation. Other recent ones are Cement with buy-out of Jaiprakash Associates’ by Ultratech and a number of buy-outs in Power sector. Globally, the scenario is even more pronounced with deals in the range of $ 20-30 bn being a common occurrence. So what drives … Continue reading Consolidation in Industries – What drives it..??
The approval of merger proposal by the shareholders of Vedanta ltd yesterday, brings it closer to an important deal to de-risk businesses and simplify business structure. The deal, first proposed in June’15, attempts to get the best of both worlds for the two entities which would diversify source of earnings for Cairn. Vedanta, in turn, would get access … Continue reading Cairn – Vedanta Merger. Deal Explained..
The reorganization being undertaken by Aditya Birla Group involving two group companies is an exercise to reduce some of the complexity around its business structure. While the market is confused about the purpose and gain/loss arising out of this, the exercise must be looked at from the perspective of the group and not just these … Continue reading Grasim – A B Nuvo Merger – Towards Group Consolidation..
Recent announcement by SBI and ICICI bank to form Asset Reconstruction Company (ARC) in collaboration with global players is an important step ahead for Indian Financial market. The ARC business, which has been existing in the country for almost 15 years now hasn’t got the momentum it needs. The entry of these players should help ARCs get onto their … Continue reading Asset Reconstruction Company – From Slag to Cement..!
Tata Sons and NTT Docomo, in the news last week, find themselves in the middle of a complex legal tussle. The two had entered into a agreement, at the peak of telecom revolution in the country, to offer telecom services. The deal makes for an interesting case of corporate strategy going wrong not only because it failed to read … Continue reading Tata Docomo JV – A deal gone wrong..
HCC (Hindustan Construction Company) got reprieve from the lenders last week with the invocation of S4A (Scheme for Sustainable Structuring of Stressed Assets) scheme, released by RBI to tide over the bad debt crisis. The invocation of the scheme reflects lenders confidence in the strength of the company. A ninety-year old company should ideally fall in the category of ‘too … Continue reading HCC – Too old to fail..!
The acquisition of Jaypee’s power unit by JSW Energy, the third for the company in recent past brings back focus on the sector. The sector also saw another big deal, namely Tata Power’s acquisition of Welspun’s renewable assets about a month back. Other than the domestic players, a number of foreign players are also participating in the … Continue reading Power Sector Consolidation – The Rationale..
Reliance Industries has posted another good set of numbers with 18% jump in profits for quarter ended June’16, on top of similar 16% jump in the previous quarter. Its core margin remains intact with cost of goods and trade, as a percent of sales coming down from 75% to 70% y-o-y, giving a huge room for … Continue reading Reliance Industries – Beneath the quarterly numbers..
The acquisition of Jaiprakash Associate’s Cement business by Ultratech is another important milestone for the Aditya Birla Group which has been consistently expanding its businesses across all segments. The group is among the few who have negotiated the business turbulence of last decade well and could be a textbook case of how ‘slow and steady’ … Continue reading Ultratech Jaypee deal – Lenders take all..!
Lanco Infratech has been in the news for financial losses, stuck projects and numerous discussions with the lenders for debt restructuring. Another infrastructure sector, debt heavy company falling prey its high risk strategy with the change in market conditions.. Lanco is primarily engaged in EPC (Engineering, procurement and construction) and Power Generation sector. The … Continue reading Lanco Infratech – Another house of Debt..