Bharti Enterprises’ estimated $4 billion deal to acquire a 24.5% stake in BT Group, the largest broadband and mobile company in the UK, marks a significant milestone in the ongoing trend of Indian companies expanding their footprint in the UK. This move continues a tradition of Indian firms making strategic acquisitions in the UK, a trend that gained momentum in the early 2000s.
Pioneers of Indian Acquisitions like Bharti Enterprises in the UK:
Tata Group’s Landmark Acquisitions: The Tata Group, a salt-to-software conglomerate, has been at the forefront of Indian acquisitions in the UK. The trend began with Tata Tea’s historic acquisition of the British tea brand Tetley in February 2000 for £271 million. At the time, this deal was considered the biggest acquisition in Indian corporate history. The acquisition of Tetley, a well-known global tea brand, marked Tata Tea’s transformation from a smaller player into a significant global entity.
Tata Group continued its acquisition spree, with Tata Steel’s $12 billion acquisition of Anglo-Dutch steelmaker Corus Group Plc in April 2007. After a competitive bidding war, this acquisition catapulted Tata Steel to global prominence and showcased the ability of Indian companies to take on and succeed against much larger international competitors.
Another landmark deal by Tata Motors was the 2008 acquisition of the British luxury car brands Jaguar and Land Rover from Ford Motor Company for $2.3 billion. This acquisition expanded Tata Motors’ portfolio and marked a significant moment in the global automotive industry.
Welspun and the Christy Brand: In July 2006, Welspun India Ltd, under the leadership of B K Goenka, acquired an 85% stake in CHT Holdings Ltd, the parent company of Britain’s leading terry towel brand Christy, for ₹132 crore. This acquisition gave Welspun access to the premium segment of the home textiles market in the UK and Europe, furthering its ambitions to become a global player in the industry.
Mahindra & Mahindra’s Strategic Moves: Mahindra & Mahindra (M&M), another prominent Indian conglomerate, expanded into the UK market by acquiring the UK-based two-wheeler maker BSA Company in October 2016 for £34 lakh. This acquisition, conducted through M&M’s subsidiary Classic Legends Pvt Ltd, allowed the group to leverage the iconic BSA brand in global markets.
TVS Motor Company’s Acquisition of Norton Motorcycles: In April 2020, TVS Motor Company, based in Chennai, acquired the iconic UK-based bike maker Norton Motorcycles for £16 million in an all-cash deal. This acquisition marked TVS Motor’s entry into the premium motorcycle segment and further underscored the trend of Indian companies making strategic acquisitions in the UK.
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