Article about entering a foreign market
Theoretical Topic : Entering foreign market
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Godrej Consumer in talks to buy co in Argentina
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Namrata Singh, TNN, Apr 18, 2010, 11.45pm IST
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MUMBAI: Godrej Consumer Products (GCPL) is at it again. The Godrej group company is all set to make its sixth global acquisition, this time in Latin America. It is learnt that GCPL is in talks with an Argentine company, Issue Group Co, a family-owned business which specialises in hair colouration, for a possible buyout. If the acquisition goes through, GCPL would get a strong foothold in the Latin American market after establishing bases in Africa and Indonesia through a series of acquisitions recently.
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GCPL announced the acquisition of Megasari in Indonesia in April and Tura in Africa in March 2010. Since 2006, the company has acquired Rapidol and Kinky businesses in Africa, which have provided Godrej a substantial share of the African hair market.
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According to industry sources, GCPL is in an advanced stage of discussions with Issue Group, and an announcement is expected to be made soon. However, when contacted by TOI, Adi Godrej, chairman, Godrej Group, said the group does not comment on market speculation. An email sent to Issue Group's co-founder Roberto Hlace did not elicit a response.
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Being a closely held company, the financials of Issue Group could not be ascertained, but it is said to be one of the leading players in the Latin American hair market.
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According to Issue Group's website, it has three subsidiaries in Mexico, Brazil and Uruguay, which cater to the demands of these markets. Its