Corporate India prowled the world in 2006, eyeing big-ticket mergers and acquisitions. While a few deals did not materialize for a resurgent India Inc, it still managed to buy out many companies overseas. Yes, for Indian business, 2006 was the year of acquisitions.
A consortium led by India's largest electronics firm Videocon acquired South Korea's debt-burdened Daewoo Electronics for $700 million (Rs 3,150 crore).
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The agreement was signed on October 20 by a consortium led by Videocon and creditors of the troubled South Korean firm, which was earlier part of the Daewoo Group that wound up in 1999 after running up a debt of about $80 billion.
Videocon and US-based equity fund Ripplewood had jointly bid for Daewoo Electronics.
The deal marked Videocon's third purchase in 2006 after Thompson's global picture tube business for 240 million euros (about Rs 1,260 crore) and the loss-making Indian subsidiary of AB Electrolux, Sweden.
Videocon had taken over Electrolux Kelvinator India in a cashless transaction, wherein AB Electrolux agreed to subscribe to Videocon's GDR worth about Rs 406 crore (Rs 4.06 billion) as part of the deal.
Image: Videocon chairman, Venugopal Dhoot
Text: Rediff Money Desk
Also read: The man behind Videocon's success