Indian firms on buying spree in the US

18-Feb-2017 #India-US Source: India Inc
The US remained among the key destinations for Indian companies on a global expansion spree. JSW Steel to restart US coal mining JSW SteelsJSW Steel plans to restart coking coal mining in the US, according to Indian media reports. JSW Steel owns nine coking coal mines with cumulative resources of 123 million tonnes at West Virginia in the US. These mines, which were acquired from a string of US-based companies in 2010, could not be developed due to a fall in coal prices following global financial crisis and the subsequent economic slowdown. Spot coking coal prices have more than trebled from $90 a tonne to $310 a tonne since July, on the back of strong demand from China and predictions of worst-ever cyclone in Australia. Seshagiri Rao, Joint Managing Director, JSW Steel, said: “We will restart coking coal mines in the US by March next year and then take up iron ore mining in Chile. We will not bring the coal to India but it will act as a financial hedge as we are largely dependent on imported coal to operate our plants in India.” International coking coal prices have gone up sharply because of Chinese imports. Bharat Forge buys Tennessee firm Kalyani Bharat ForgePune-based metal forming multinational Bharat Forge is set to acquire 100 per cent shareholding of Walker Forge Tennessee LLC (WFT) through its US subsidiary, Bharat Forge America. The transaction is valued at $14 million, which will be funded through internal accruals and debt, the auto components major said. WFT is a leading supplier of complex, steel and high-alloy steel, engine and chassis components to a diverse group of customers across automotive and industrial sectors. Bharat Forge Chairman and Managing Director Baba Kalyani said: “The acquisition of Walker Forge Tennessee creates a strategic manufacturing footprint in North America to leverage our existing customer relationships while simultaneously enabling the company to address new endmarket segments and broaden the product portfolio.” The acquisition is focused on increasing the company’s product offering in the passenger car and commercial vehicle segments as well into industrial sectors such as construction and mining. Amity acquires New York campus amity UniversityIndia’s leading educational brand, Amity, has announced the acquisition of a 170-acre waterfront campus from St. John’s University located in Oakdale, Long Island, New York. Amity has been in preliminary discussions for the acquisition of the Boston campus of Education Management Corporation (EDMC), one of the largest education companies in the US, which has been owned at different times by private equity players like Goldman Sachs and Providence Equity. Amity said in a statement: “There were a large number of bidders for the property located in a premium location in the US, close driving distance from JFK airport and connected by highway and train connectivity to Manhattan. “As per St. John’s representatives, Amity was selected as the buyer because of its strong education background, ability to close quickly, integrity of the group, and the vision to continue the facility as a global teaching and research facility.” Amity closed the deal and took possession of the campus on September 27, 2016. St. John’s University has been permitted to use one of the academic blocks until June 2017 so that they can transition their programmes seamlessly. Bengaluru firm buys US cable maker CableBengaluru-headquartered Suprajit Engineering has acquired US-based Wescon Controls for an enterprise value of $44.4 million. Suprajit, one of the largest cable makers in the world made the acquisition through its wholly-owned subsidiary Suprajit USA Inc. K. Ajith Kumar Rai, chairman and managing director of Suprajit Engineering, said: “Wescon is a perfect strategic fit for Suprajit. Wescon’s market leading position in North America in the OPE segment is a significant sectoral de-risk for Suprajit in its core business of cables. “This will also prepare a solid ground for Suprajit to continue to increase its exposure in both automotive and nonautomotive business in the Americas.” Wescon Controls, a manufacturer of control cables in the non-automotive outdoor power equipment (OPE) space, has its plants in the US and Mexico. Grant Thornton India acted as the sole financial advisor to Suprajit, while Citibank NA was the financier to Wescon on this deal. New JV to attract Indian investment to US Joint VentueA non-resident Indian (NRI) has formed a joint venture with an American investment firm to attract Indian investment to the US and create job opportunities in areas such as New England and Baltimore. Satish Jha, the chairman of the diversified The Jha Group (TJG) announced a partnership with the US-based Ashcroft Sullivan Economic Development Centers (ASEDC) to bring investment and economic opportunities to India, under the EB-5 programs, stimulating job creation in the US. The new JV has been named as Ashcroft Sullivan Jha. Jha said: “The principals of the new joint venture, Ashcroft Sullivan Jha, have set up offices in New Delhi and Goa and are planning to open offices in Kolkata, Hyderabad and Chandigarh to educate investors about Green Cards for immigrants from India through the EB-5 program.” India, US strike advance pricing deal India USIndia and the US have struck a deal for the first bilateral advance pricing agreement, opening the doors for US multinationals in India to ascertain their tax liabilities beforehand. The two countries have also resolved 108 tax disputes involving a tax of about Rs 5,000 crore ($758mn) through the Mutual Agreement Procedure (MAP). “The two competent authorities reached an agreement on the terms and conditions of the first ever Bilateral APA involving India and the USA,” the Indian finance ministry confirmed in a statement. The two countries resolved 66 transfer pricing disputes and 42 cases related to treaty interpretation. MAP, under the Double Taxation Avoidance Agreement (DTAA), is an alternative dispute settlement mechanism available to authorities and foreign investors.
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