Saikat Chaudhuri, management professor at Wharton Business School, is among the leading experts on global M&AS. In this interview with Saumya Roy, he says the Tata-Corus deal signals the coming of age for Indian industry. Excerpts:
On the impact of the Tata Steel-Corus deal:
Indian firms have been getting their feet wet and have been getting acquisition experience. This deal was made imperative by the Arcelor-Mittal deal. While other steel-makers saw the threat too, the Tatas acted on it first. I do have some concerns as I think the purchase price is on the higher side, which is indicated by the fact that Corus accepted it immediately. This represents a kind of coming of age for Indian industry. This deal is analogous to the Lenovo-IBM deal because that was the first noticeable Chinese acquisition.
On the reasons for global acquisitions by Indian manufacturing firms:
In 2000-01, I had said that our IT companies could do substantial global acquisitions. But we are seeing the larger global acquisitions in other areas first instead. The...