Anil Ambani is firing all cylinders in the quest to become India’s largest group (and Richest Indian), the coveted place currently held by his elder brother Mukesh. Close to the heels of Reliance Power – a $2.8 billion mammoth IPO, Anil has already announced his intentions of going public with his entertainment division.
Now another big news has started making rounds. Anil Ambani run Reliance Communications is in talks with up-for-grabs French IT consulting firm Capgemini.
Times Online reports:
Capgemini, the French IT services group, has held early-stage talks with Reliance Communications, of India, that could result in the first acquisition of a significant Western IT house by one of India’s fast-growing competitors.
Reliance Communication’s interest confirms Mr Ambani’s hopes to build a significant IT business.
A move on Capgemini would give it access to a client base in continental Europe and catapult it among the world’s top ten IT groups by market share.
Mr Ambani, India’s second-richest man after his estranged brother Mukesh, has already suggested that he aims to be among the world’s five biggest video games developers.
If this acquisition goes through, Reliance Communication will not only become largest Indian IT services provider, but also rank 8th in the world in terms of size.
Currently, Tata Consultancy Services (TCS), India’s largest private sector employer, ranks at 35th place in the world with 0.6 per cent of the market.
Capgemini was in eighth place with 1.4 per cent market share.
Do you think this potential acquisition will take place?
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{ 11 comments… read them below or add one }
I think it would make sense for Tech Reliance to buy Capegemini rather than Reliance Communications
This acquisition would make good strategic sense at this time. European economy is showing signs of stress, requiring more businesses to outsource their IT needs. By tapping into GapGemini’s strong european presence & customer base, and combining that with the vast resources that Reliance possesses, think thats a winning combination.
First it was Infosys, then Wipro and now its the turn of Reliance Comm. Rumours abound. Anil Ambani is flush with cash and don’t be surprised to see some big bang buys.
Afterall buying out Cap Gemini would mean so much of brand name value and also regular cash flow which Anil needs desperately now.
Anil Ambani buying Cap Gemini will definitely be the right thing to do at this moment, Reliance Communication acquiring the 8th position in the world in terms of size, if we think the other way round, not thinking of the benefit of the Ambani’s, it’s going to represent India in the World business chats which is really a very prestigious matter. What do you think about this? I will be waiting for your response.
It does make a lot of sense for Reliance at the moment, but I doubt the deal will go through. Mostly because I don’t think it makes sense for Capgemini to go ahead here.
Sudhanshu,
Capgemini has been scouting for buyers for a long time now. With their size, very few companies can buy them – Reliance being one who could.
If they are priced competitively, Reliance is sure to take over…
Reliance should not takeover Capgemini. Capgemini shareholders in France will be very tough to convince, however high the offered price.
I don’t think that this would go about.. just check this out
http://news.moneycontrol.com/india/news/business/capgemini-eyes-more-india-buys/17/00/327302
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This deal will never go thru,because capgemini has enough resources to survive.Capgemini makes sensational revenues every year.Anil Ambani cannot dream about that.