New Delhi: Indian firms struck 38 pacts worth over USD 1.1 billion in the US in 2014 after a lull in the preceding year, according to a FICCI-EY report.
The pacts indicated renewed M&A interest. Around 20 Indian firms had signed merger and acquisition (M&A) deals in the US in 2013 while one-fourth of the total 268 outbound acquisitions were made in the US between October 2013 and December 2014, it said.
It added, “To foster a positive investment environment further, a Bilateral Investment Treaty (BIT) can provide confidence and protection to investors from any discriminatory measures.” Negotiations on the BIT between India and the US are on. The treaty, aimed at fostering investment opportunities, is expected to improve transparency and predictability for investors and support economic growth and job creation in both the countries, it added.
It said that the US’ share in India’s total outward FDI has increased to 7.8 per cent in 2014 from 5.5 per cent in 2009. For example, Reliance Industries’ investment in its shale gas joint ventures saw a whooping increase of approximately USD 900 million from January 2014 to December 2014.
The report said “time is opportune for US companies to scale up their engagement with Indian businesses.” Among 38 M&A deals struck in 2014, the major ones were – USD 240 million deal between Tech Mahindra and Lightbright Communications Corp and USD 232.5 million pact between Aurobindo Pharma USA Inc and Natrol Inc. The Essar Group is also constructing a USD 1.6 billion iron ore-pelletising greenfield project in northeast Minnesota, it added.
