An Ernst and Young study on mergers and acquisitions in the mining and metals sector observed that Indian companies for the first time shot ahead of their Chinese counterparts in acquiring overseas mineral assets. Indian companies went on a mega acquisition spree of $4.64 billion in 2010 moving ahead from just $128-million worth of overseas buys in 2009. The Chinese outbound investments declined by more than half to $4.45 billion.
India shot up the ranks of acquiring countries, to 7th place in 2010 from 14th place in 2009 and thereby accounted for 5 per cent of the global deal value. About 20 deals were done by Indian firms which included 12 overseas deal worth $6.6 billion. Coal accounted for more than two-thirds of the Indian mineral overseas M&A spend.
China who had in 2009 topped the global rankings in slipped to fourth place in total deal value in 2010. As per the study the drop was largely due to stronger economic growth in other countries as opposed to a reduced appetite for M&A in China.
Canada, with over a fifth of global deal value, topped the chart. The global deal value in mining and metals almost doubled to $113 billion in 2010 as against $60 billion in 2009.
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