July 26, 2011
M&A activity both in India and by Indian companies continues to grow after the slump experienced as a result of the financial crisis. According to recent data, “midway through 2011, M&A financing volumes, completed and pipeline, are already nearly 30 percent larger than the previous record set for an entire year.” The access to financing has allowed Indian firms to expand their outbound M&A activity. With respect to inbound M&A activity, Walt Disney just announced its plans to take private one of India’s leading media companies by offering to purchase the remaining outstanding shares of UTV Software Communications Ltd. in a deal estimated to be worth as much as 20.1 billion rupees (approximately $454 million). Disney already owns 50.44 percent of UTV. This is a big deal for the Indian entertainment industry and for Disney which has been working to tap into this extremely important market. Disney expects the closing to take several months especially since shareholder and regulatory approvals are significant hurdles in acquisitions of Indian firms.