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The main drivers for greater consolidation are expected to be increased scale of operations, market share, enhanced geographical presence, access to newer technologies, and economies of scale.
Indian companies are expected to be more aggressive buyers of companies in Europe in the short run because US companies are considered over-priced. Analysts say that they would most likely take a product alliance route to expand market-share in the US. The only exception to this view are Sun and Wockhardt, which have announced plans to buy US based companies. Additionally, there is intense pricing and margin pressure in the US making it less attractive than the smaller but bigger bang-for-the-buck European deals.
The overwhelming consensus is that the next Indian buy will most likely happen in France thereby giving it access to underlying registrations across Europe and establish a pan-European presence.
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