Health and personal care giant Dabur sprung a surprise at the
beginning of the past weekend when they announced that they were going to buy a
seventy percent stake in emerging Pharma Company Fem Care. What has been even more surprising is the price tag for Fem.
A very formidable price of nearly Two Hundred
and Four Crore Rupees will be shelled out by the health care major. There
is however no reason for any shareholder to panic because this acquisition is
expected to strengthen the company and make it more profitable in the coming
years.
“Consolidation” has been the name of the game across the world this year. The news so far in 2008 has been dotted by mergers and acquisitions. Despite the US credit crisis and the tight global financial situation, the value of M&A deals this year has surged passed the $1 trillion mark. Closer to home, however, the story has been different. In India, the value of M&A deals has plummeted almost 72% year-on-year.
Health and personal care giant Dabur sprung a surprise at the
beginning of the past weekend when they announced that they were going to buy a
seventy percent stake in emerging Pharma Company Fem Care. What has been even more surprising is the price tag for Fem.
A very formidable price of nearly Two Hundred
and Four Crore Rupees will be shelled out by the health care major. There
is however no reason for any shareholder to panic because this acquisition is
expected to strengthen the company and make it more profitable in the coming
years. 
