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Thursday, April 17, 2008

India accounts for 18 pc of top 10 global M&A metal deals:PwC

Indian corporates Tata Steel and Hindalco Industries have accounted for over 18 per cent of the top 10 merger and acquisition deals in the global metal industry worth about USD 21 billion for 2007, as per a latest report.

The total value of the top 10 M&A deals globally in the metal space was at USD 113 billion last year, almost 73 per cent more than the USD 65.5 billion that was exchanged in the top 10 deals of 2006, a report by global advisory firm PricewaterhouseCoopers said.

Tata Steel and Hindalco Industries have featured among the 10 top deal makers in the global metal space during 2007, with their combined value amounting to USD 20.53 billion, the report stated.

Tata Steel acquired Anglo-Dutch steelmaker Corus for USD 14.748 billion, where as Aditya Birla Group flagship Hindalco Industries acquired Canada's Novelis for USD 5.7 billion.

In 2007, values of a total 411 deals in the metal sector were disclosed, compared to 385 deals in the previous year. And the aggregate value of those deals soared to USD 144.7 billion, a 67 per cent increase from the 86.4 billion dollars that was traded in 2006, the PwC report stated.

The Netherland's ArcelorMittal, headed by India-born Laxmi Mittal, featured in the sixth position for acquisition of Brazil's Arcelor Brasil for USD 5.626 billion.

According to the report, the steel sector which normally dominates the metal industry deal making scene was relegated to second place in 2007. The steel sector saw 249 deals worth USD 60.9 billion last year, which is USD 16.4 billion less than the value that changed hands in the aluminium sector and an overall drop of 23 per cent from the previous year's high.

The sector saw lesser number of deals in 2007 due to a fall in the deals made by financial buyers including private equity players. The deals accounted for deals worth only USD 3.9 billion in 2007, compared to USD14.2 billion in the previous year, it stated.

Giving an outlook for this year, PwC said, despite the downturn in the world's leading economies a number of metal companies still have plenty of liquidity and some private equity firms also have unspent capital. (Source: http://www.tradingmarkets.com/.site/news/Stock%20News/1381419/)

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