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| Indian cos success greater in domestic M&As than overseas |
| Press Trust of India / Mumbai Aug 09, 2009, 16:00 IST |
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Indian companies have emerged as the most attractive and enthusiastic players in the mergers and acquisitions space, both domestically and globally, though success is more evident within the country, a report said.
"Indian acquirers making domestic M&A deals are more successful, generate significantly higher shareholder value and outperform overall market returns, compared to those involved in cross-border M&A deals," a Watson Wyatt's 'Horizon Report on M&A in Emerging Markets'" said.
Watson Waytt's Horizon report tracks mergers and acquisitions activities in the emerging markets.
"Success domestically is because it is easier to achieve efficiencies. Familiarity with legal and regulatory environment, accounting issues and the culture make it easy for Indian firms to succeed in the Indian market more than overseas," Watson Wyatt Managing Director Dhritiman Chakrabarti told PTI here.
"Investor confidence goes up almost immediately and the market responds positively," he said.
However, when these firms venture outside, they under-perform the Indian market.
"The dismal performance is more prominent in the US acquisitions compared to that in the UK. Indian acquirers in the US under-perform Indian acquirers in the UK by nearly 43 per cent," the Horizon report said.
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