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Wed 4 Oct, 2006 11:28 am
Wednesday October 4, 2006
Report: India's Tata Group plans to buy Boston-based Ritz-Carlton hotel for US$170 million
NEW DELHI (AP) - The Tata Group plans to buy Boston-based Ritz-Carlton hotel for US$170 million (euro135 million) in a move that will help the Indian business conglomerate expand its presence in the United States, news reports said Wednesday.
The deal will be executed by the U.S. subsidiary of Indian Hotels Company Ltd. that runs Tata's Taj brand of hotels and resorts, the Business Standard newspaper said quoting R.K. Krishna Kumar, vice chairman of Indian Hotels.
The company, which has interests in everything from steel and automobiles to software services and hotels, is currently involved in a due diligence process to execute the deal, Kumar said.
It was not immediately clear if the Tatas would change the brand of the 79-year-old hotel, The Economic Times said.
The Ritz-Carlton hotel would be the second U.S. hotel to be acquired by the Tata Group. Last year, the group took over management of the Pierre Hotel in Manhattan.
Tata officials could not be immediately reached for comments.
The acquisition would be the latest in a string of overseas acquisitions by top Indian companies, which have been seeking global footprints after thriving for decades in protected domestic market.
The Tata Group has been leading the charge, buying companies and a variety of business almost in different parts of the world.
In August, the group struck a deal to acquire 30 percent controlling stake in New York-based Energy Brands Inc., which makes the popular Glaceau brand of flavored waters, for US$677 million (euro532 million).
Besides making acquisitions, the group is also exploring joint ventures and other opportunities to expand its hotel business in emerging markets, especially in Southeast Asia. Recently, the Tatas signed a joint venture agreement with Hong Kong-based Sino group to develop a chain of hotels in China, Vietnam and India.
The Ritz-Carlton Hotel in Boston is currently owned by Millennium Partners, a New York-based real estate company that bought it from Marriott International Inc. _ the world's largest hotel company _ for US$122 million (euro96 million) in 1999. - AP
Star
since american customers sent much of their money - via walmart and other american corporations - to india , china ... (by buying their goods) , this is just a way of "recycling" the money .
one might argue that the u.s. economy actually benefits in this kind of deal since the money is being returned to the united states .
btw. these deals go on all the time :
MITAL (sp?) Steel of india just completeted a major transaction buy buying AND selling a number of large steel producers .
the canadian FAIRMOUNT hotels group was purchased by a saudi investor.
it's just money , after all
.
hbg
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