December 19, 2008
HCL - Axon Deal Dissected
On December 15, 2008, the website of HCL Technologies Limited (“HCL”) was promptly changed to proudly mention “I am HCL Axon”, immediately after the High Court of Justice in England and Wales confirmed the approval of the ‘scheme of arrangement’ for the acquisition of the Surrey (UK) based Axon Group plc in an all cash deal worth GBP 441 million to be paid to its shareholders by HCL’s UK based indirect wholly owned subsidiary, HCL EAS Limited.
HCL’s acquisition of Axon, in a worsening business environment worldwide, puts ambitious India Inc. in global limelight yet again. The deal which adds to the acquisition blitzkrieg by Indian Inc. intensifies the shift of balance of power and raises the question – has the age of reverse colonization really arrived?
Please click here for the document, for a detailed dissection of not only the Indian and UK legal, tax and regulatory aspects, but also the commercial viability of this historic acquisition for HCL which clearly is – the largest acquisition in the tech space ever by any Indian company overseas.
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