Third World's Corporate Giants Embarking On Global Takeovers

FROM INVESTOR'S BUSINESS DAILY

As the developing world churns out companies with global ambitions, India's new multinationals have been on the fast track making acquisitions.

India's firms have forged ahead with takeovers in the U.S., Canada and Europe, while Chinese and Russian firms still get the cold shoulder.

India's new multinationals are mostly in private hands, with some run by families. Many Chinese and Russian multinationals are still state-controlled, or have opaque ties to government-run banks.

While attempted takeovers by Chinese or Russian firms continue to raise national security issues in the West, the welcome mat seems out for India-based companies.

In the auto industry, India's Tata Motors ttm -- which just unveiled a $2,500 car -- is the favorite to buy Ford's F high-end Jaguar and Land Rover brands. In earlier deals, parent Tata Group bought U.K.-based Tetley Tea, steel maker Corus and the Ritz-Carlton hotel chain.
Advantage: Private Sector

Tata isn't the only India-based company to go global via takeovers. Suzlon Energy (OOTC:SZEYF) , which builds wind farms, acquired Germany's Repower in June. Hindalco Industries (OOTC:HNDFF) snapped up Canada's aluminum maker Novelis. And India's drug firms have used deals to expand into Europe.

"Indian companies get cut some slack because generally they're private, so there is not much anxiety involved in acquisitions," said Ravi Ramamurti, professor at Northeastern University. "Many of the multinationals coming out of China or Russia still have close government ties, and state control is viewed with trepidation. It's a red flag. That's why China gets more flack."

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