If Hollywood meets Bollywood, art mimics real life deal making

A number of sources ran stories yesterday about the ongoing saga of Metro-Goldwyn-Mayer (MGM) and its ongoing battle to service the significant debt accumulated from when it was the subject of a takeover by Comcast, Sony Corporation and a private equity consortium back in 2005.

Sahara India Pariwar, an Indian conglomerate, is being linked with a rescue bid for MGM and this isn’t the first high profile acquisition suggested for Sahara; it was one of the companies to be linked to takeover of Liverpool football club earlier in the summer as well.

This deal though is literally the tip of the BRIC iceberg. Year-to-date in 2010, BRIC-based acquirors have accounted for just over 23% of all announced deals by value – some $421bn worth of deals. This is an incredible figure given that back in the record deal making year of 2007 over the same time period BRIC acquirors only accounted for just under 7% of all announced deals by value.
Some of the higher profile deals this year involving BRIC acquirors include the ongoing acquisitions of EDF’s energy network activities, Syncrude Canada, Keystone Foods in the US, and the completed acquisitions of Volvo and Gerdau Ameristeel, to name just a few.

Given the ongoing depressed state of deal making in heavyweight regions such as North America and Western Europe, and the tentative steps being taken to return to deal making by the private equity players, evidence would suggest that the BRIC countries could be responsible for helping 2010’s deal numbers look a little more respectable.

Filed under: dealmaking, India, M&A, media, PE, US, BRIC