Country's leading industrial conglomerate Tata group, which recently announced the acquisition of premium British car brands Jaguar and Land Rover, has spend a whopping 133 million dollars in advisory fees related to various buyouts in the last two years.
According to data compiled by leading global financial information provider Dealogic, "the Tata group of companies has paid a total of 133 million dollars in advisory fees to banks advising on acquisitions since 2006".
The amount of 133 million dollars assumes significance as the group have acquired as many as 56 businesses with a total volume of 20.6 billion dollars in the last two years, accounting for 82 per cent of their total merger and acquisition volume.
Since the year 2002, the Tata group has made as many as 106 acquisitions valued at 24.2 billion dollars. Tata's M&A activities are mostly outbound as only 13 per cent of Tata Group' acquisitions have been domestic, that is targets based in India. The average acquisition size by the Tata Group is 284 million dollars.
The recent acquisition of Jaguar Cars and Land Rover for 2.3 billion dollars is the second largest acquisition by the group, following Tata Steel's acquisition of Anglo-Dutch steel maker Corus for 12.1 billion dollars, essaying the largest overseas takeover by an Indian company.
Dealogic further added that the United Kingdom is the most targeted nation with a M&A volume of 16 billion dollars through seven deals, and this accounts for 82 per cent of the total M&A acquisitions.
Some of the significant acquisition by the Tata group in the UK, include the Corus Group, the Tetley group and the latest British marquees Jaguar and Land Rover.
While the acquisition of General Chemical Industrial Products by Tata Chemicals and the takeover of Glaceau by Tata Tea are the two major deals announced in the US.
Some of the most significant deals announced by the Tata Group since 2006 include -- the acquisition of 30 per cent stake in Indonesia's PT Kaltim Prima Coal and PT Arutmin by Tata Power in July 2007, the acquisition of Transtel Telecoms of South Africa by VSNL in April 2007, Tata Tea's acquisition of Poland's Vitax and Flosana in April 2007.
Besides, in April 2007, Indian Hotels acquired Campton Place Hotel in the United States for 58 million dollars, in March 2007, Tata Power picked stake in Indonesia's PT Bumi Resources for 1.3 billion dollars, Tata Steel acquired Anglo-Dutch steel maker Corus for 12.1 billion dollars, essaying the largest overseas takeover by an Indian company in in January 2007.
Further, in August 2006, Tata Tea acquired 30 per cent in US' Glaceau (Energy Brands) for 677 million dollars. Later it sold it to Coca-Cola for 1.2 billion dollars and in June 2006, Tata Tea acquired US-based Eight'O Clock coffee company for 220 million dollars.