India makes cross-sector mark in UK

From the mega Vodafone deal with Idea Cellular to healthcare acquisitions, Indian firms have had a significant impact on the UK economy in recent weeks.Piramal buys UK firm's drugs

Mumbai-headquartered Piramal Enterprises has clinched a deal to acquire UK-based Mallinckrodt LLC's portfolio of intrathecal (administered via the spinal column) spasticity and pain-management drugs in an all-cash deal worth $171 million.The portfolio acquired includes Gablofen (baclofen), a severe spasticity management product, currently marketed in the US, and two pain-management products that are under development.There will be additional milestone-related payments of $32 million, depending on the financial performance of the acquired assets over the next three years.Ajay Piramal, Group Chairman, said: “This will be our seventh pharma acquisition in the last two years, taking our investment for inorganic growth to 3,000 crore [$450mn] across our pharma businesses.”The latest transaction is subject to regulatory approvals in the US and certain other conditions.Indian banks in UK set for growthIndian banks in the UK are set for a new phase of growth in the UK as they prepare to expand operations into subsidiaries, according to the UK chief of State Bank of India (SBI).Sanjiv Chadha, who is SBI's Regional Head for the UK and chair of the Association of Indian Banks in the country, said that the move will lead to a wider range of products for the Indian diaspora.He said: “Indian banks have always followed the diaspora and just as the diaspora has transformed and grown, the Indian banks are also being asked to subsidiarise as we have also grown.“State Bank of India and Bank of Baroda will have both branch operations and subsidiary operations. The importance of this move is a wider balance sheet size.”Chadha confirmed that SBI and Bank of Baroda are set to make the transition from a branch to subsidiary in the next three to six months, following which they will have a dual presence in the UK.Idea merges with Vodafone

British telecom major Vodafone and India's Idea Cellular are to merge to create the country′s biggest phone company by subscribers.The Kumar Mangalam Birla owned Idea's merger with Vodafone will dislodge Bharti Airtel, which has been at the top for 15 years. The new crore entity will also be the world No. 2 after China Mobile.The deal will see Aditya Birla Group gradually raising its stake in the combined entity while the Vodafone Group will reduce its own, with the aim of both holding equal stakes over a period of time.As a first step, AB Group will acquire 4.9 per cent from Vodafone to take its stake to 26 per cent, with Vodafone holding 45.1 per cent. Further, the company will have the right to buy another 9.5 per cent in the combined entity over four years from the British telecom firm.Kumar Mangalam Birla will be the chairman of the new entity. Vodafone will name the chief financial officer while the two companies will jointly name the CEO and operations head before the closure of merger, expected within 24 months.