Tata Power gives up bid for hydropower firm in Austria
Tata Power gave up its bid for Siemens' hydropower business in Austria after local groups insisted that European firms should remain with local entities.
By PTI |
MUMBAI: It’s been a tough time for Indian brick and mortar companies that are looking to acquire overseas firms, with Tata Power joining the club of companies that have faced resistance or had to back out of a takeover deal abroad due to opposition by local groups.
Tata Power gave up its bid for Siemens' hydropower business in Austria after local groups insisted that European firms should remain with local entities.
"We had made a bid to acquire a power firm in Austria. But, there is a growing sentiment in Europe, that European firms should be acquired by entities belonging to that region only. So the deal was called off," Tata Power Director Adi Engineer told media.
The development comes shortly after liquor baron Vijay Mallya was forced to opt out of a race to acquire Champagne maker Taittinger amid demand from the workers council that ownership should remain with French firms only.
Elsewhere, India-born entrepreneur L N Mittal has had to contend with stiff opposition to his bid for rival Arcelor. The Luxembourg-based company has now decided to merge with Russia-based Severstal to fend off Mittal's takeover bid.
Besides, the Tata Group itself has been facing opposition from groups in Bangladesh, which are against its $3 billion investment in power, steel and fertilizer projects. But the group has not yet called off its investment plans.
Tata Power gave up its bid for Siemens' hydropower business in Austria after local groups insisted that European firms should remain with local entities.
"We had made a bid to acquire a power firm in Austria. But, there is a growing sentiment in Europe, that European firms should be acquired by entities belonging to that region only. So the deal was called off," Tata Power Director Adi Engineer told media.
The development comes shortly after liquor baron Vijay Mallya was forced to opt out of a race to acquire Champagne maker Taittinger amid demand from the workers council that ownership should remain with French firms only.
Elsewhere, India-born entrepreneur L N Mittal has had to contend with stiff opposition to his bid for rival Arcelor. The Luxembourg-based company has now decided to merge with Russia-based Severstal to fend off Mittal's takeover bid.
Besides, the Tata Group itself has been facing opposition from groups in Bangladesh, which are against its $3 billion investment in power, steel and fertilizer projects. But the group has not yet called off its investment plans.
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