India M & A may exceed the record 71 billion U.S. dollars this year of the agreements

India M & A in 2011 may exceed the record 71 billion U.S. dollars this year of the agreements, led by oil and gas, metals and mining companies, according to M & A bankers like Topsy Standard Chartered Plc Mateo .

$ 10,700,000,000 billionaire Sunil Mittal's acquisition of mobile operators in Africa was an almost fourfold increase in acquisitions this year exceeded 2,007 offers from 69 billion.

"Large Indian corporations are going through a growth phase: it is thought that there are plenty of opportunities, they think they have access to capital", 35 years old, Mathew, CEO of M & A for India, said in an interview Dec. 27. The London-based bank rose 13 places to number two among India acquisition advisers this year, its highest level. "They are taking advantage of positive sentiment to carry out long-term strategic transactions," he said.

Companies in Asia-Pacific, including India and China are expected to be more buyers purchasing in 2011 and offers attractive valuations of national unity and global competition .
Foreign firms may guide the Indian pharmaceutical companies and consumers and local companies seeking natural resources, said Bank of America Corp., the No. 3 spot.

'Highly active'

"Hotel output remains highly active, as the international company valuations are still relatively depressed, and Indian companies have access to debt and equity capital", Saurabh Agrawal, director of 41 years of age, banking India's investment in Charlotte, North Carolina-based Bank of America, wrote in an e-mail response to questions on 14 December. "Local and incoming offers will take place."

cross-border deals rose to a record 59.2 billion U.S. dollars in India this year, after New Delhi Mittal Bharti Airtel Ltd. in March agreed to buy assets Zain Africa for $ 10.7 billion. Out of mergers and acquisitions accounted for 74 percent of that volume.

The acquisition spree in India, China and Brazil contrasts with the slowdown in global tenders. Mergers worldwide have declined 46 percent between 2007 and the record. In the U.S., the world's largest market, volumes are 51 percent lower, and levels in Europe have fallen by 59 percent.

Pending deals

Pending jobs in India, including the sale of a controlling stake in Mumbai-based software maker and Patni Computer Systems Ltd. 's Honda Motor Co. held in New Delhi, Hero Honda Motors Ltd. equity firms private and Carlyle Group are bidding to acquire the shares, people familiar with the matter have said.

A group of state enterprises hired Citigroup Inc. last week to prepare a bid for Sydney Ltd., based Riversdale Mining, the fight against a 3.9 billion U.S. dollars (3.9 billion) offer to host London, Rio Tinto Group.

"The funds will be a big focus, with companies from India looking to consolidate its position in oil and gas, metals and mining," Mathew said Standard Chartered. "There will be a particular focus on India's public sector companies seeking oil assets in international and Indian companies looking to acquire the assets of iron ore and coal for their steel operations and power. "

Natural resources and telecommunications will continue to drive mergers and acquisitions, said Frank Hancock, managing director of corporate finance at Barclays Capital in Mumbai. Telecom acquisitions accounted for 26 percent of deals in India this year, while energy companies and mining accounted for another 30 percent.

Rules of Acquisition

A proposed revision of India's M & A rules also may stoke interest in national objectives, Hancock, 50, said in an e-mail Dec. 14. Barclays is ranked No. 4 in acquisitions in India, its highest ever position.

"While border still represent 70 percent of the cake, the balance between input and output will become more uniform," said Hancock. The new regulations "will make it easier for a listed company to be responsible and removed from the list since then."

A panel formed by the capital market regulator in India in July recommended increasing the threshold level of participation that would trigger mandatory open offers to 25 percent from 15 percent. Shareholders who already has more than 25 percent may also offer to buy 10 percent, half of the current requirements.

India Aims

Facilitate the limits of foreign direct investment also strengthens the appetite foreign companies' acquisition targets for India, Sameer Nath, managing director and head of mergers and acquisitions in the local unit of Citigroup, said in an emailed response to December 20 questions. New York, Citigroup is No. 6 among the advisers of purchase in India this year.

"The liberalization of FDI in the context of a sensible way would be positive for all parties," said Nath. Foreign companies may look to India for its telecommunications, healthcare and consumer industries, while local businesses will be overseas oil and gas, metals, mining and technology assets, he said.

Funding remains an important prerequisite for the acquisition in the nation, including bankers, said Nath. Output deals are particularly dependent on funds, Agrawal wrote.

A decline in borrowing costs has allowed Indian firms to substitute cheaper debt financing, putting them in position now to be more aggressive in acquisitions, "said Ganeshan Murugaiyan, managing director and head of investment banking in the local unit of UBS AG. The Swiss bank was ranked No. 7 this year in advising on acquisitions in India.

"The environment of benign debt markets, especially the second half of 2010, has helped many corporations to refinance debt or raise funds at attractive long-term costs," wrote Murugaiyan, 37, Dec. 14 . "Against this background, we expect Indian companies to be more greedy of next year."