IBEF

Indian telecom industry witnesses M&A deals worth US$ 9 billion

26 December 2008  

New Delhi: The fast growing Indian telecommunications industry has witnessed mergers and acquisitions (M&A) valued at over US$ 9 billion this fiscal, despite the global economic slowdown, according to a study by Assocham EcoPulse.

In fact, out of the total M&A deals sealed in the country, the telecommunications industry accounted for around one-third of them. The largest telecommunication deal of the year came from the buyout of 26 per cent stake in Tata Teleservices by Japanese major NTT DoCoMo Inc.

"The $2.7-billion deal enabled the Japanese giant's entry into the world's fastest growing telecom market, which has over three times the number of subscribers in Japan," the study said.

In another significant deal, Dubai-based Emirates Telecommunications Corp (Etisalat) has bought 45 per cent stake in Swan Telecom for cash up to US$ 900 million.

Among the major domestic deals in the last eight months of this fiscal, Idea Cellular has acquired 40.8 per cent stake in Spice Communications for US$ 679 million.

The study revealed that foreign companies infused about US$ 8.06 billion into the deals.