India has emerged as the second most targeted nation among the BRIC region, after China, for merger and acquisitions activities clocking deals worth $2.8 billion so far this year.
"China targeted M&A volume stood at $8.3 billion, is the highest among the BRIC (Brazil, Russia, India, China) nations in 2010 YTD, followed by India with $2.8 billion," according to global deal tracking firm Dealogic. While the India-targeted M&A deals so far in 2010 grew by 43 per cent from $1.98 billion in the year-ago period, China targeted volume rose 88 per cent to $8.3 billion. So far in 2010, the BRIC targeted M&A volume has reached USD 12.7 billion, up 42 per cent compared with 2009 Year-To- Date (YTD). The BRIC M&A volume accounts for 10 per cent of global M&A volume in 2010 YTD, the report said. It added that the top five BRIC deals in 2010 YTD, involve Chinese and Indian targets and account for 47 per cent of the total BRIC volume. While Brazil targeted M&A deals stood at $851 million YTD, down from $2.1 billion in the year-ago period, the same for Russian Federation nearly doubled to USD 774 million. According to Dealogic the announced cross-border acquisition of China's Orient Overseas Development Ltd by Singapore-listed CapitaLand, via its subsidiary CapitaLand China (RE) Holdings Co Ltd, is the largest deal in 2010.
In my opinion the Google China contradiction didn't affect the flows of FDI in China. Still India has a chance to overtake China. China is facing some of its banking problem. actually Chinese authorities had instructed some major banks to curb their lending over the rest of this month after an early burst of credit. The central bank has also told some individual lenders to increase their reserve requirement ratio by half a percentage point. The effect can be seen in the stock market of China and world. On the other hand India is still having an upper hand in IT. Big giants like TCS, WIPRO, INFOSYS are increasing their workforce by 5.1% to satisfy increased US demand. India's 60bn $ industry is having 60% business transaction with us. So on a whole India has the chance to capitalise the google issue into their favour if it creates some tension in the relation of US and China and develop in a great speed. The stage is set for india now..
What are your opinions?
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