India Inc's M&A Deals Down 21 percent in May; Down 66 percent So Far This Year

New Delhi: Merger and acquisition deals in India fell over 21 per cent last month to $1.3 billion through 42 transactions.

The January-May M&A deal value this year was just $7.53 billion, down 66 per cent from $22.03 billion during the corresponding period in 2012, audit and advisory firm Grant Thornton said.

During May, there were 42 M&A transactions worth $1,304 million, registering a decline of 21.49 per cent from the year-ago period, when there were 40 deals worth $1,661 million, it said.

"Deal activity continues to be moderated so far this year, especially, cross-border," Grant Thornton India Partner, Transaction Advisory Services Raja Lahiri said.

Cross border deal value (especially inbound deals) has been fairly subdued so far, potentially driven by slowdown in India growth rates, Lahiri added.

Excluding internal mergers and restructuring deals, however, the M&A deal values were similar to levels seen in January-May 2012.

"We continue to remain positive for potential larger cross-border deals in sectors like retail, aviation and broadcasting given the liberalised FDI Policies," Lahiri said.

Piramal Enterprises' acquisition of 10 per cent stake in Shriram Transport Finance Ltd for $ 301 million, was the deal of the month, followed by Gaursons India's acquisition of 300 acre land from Jaypee Group for $273 million.

Other major M&A deals include Jindal Poly Films' buy out of ExxonMobil Chemical - (BOPP) business for $235 million, Suvarnabhoomi Developers' acquisition of DLF's 32 acre of land in Hyderabad for $118 million and Ceebros Hotels' acquisition of Viceroy Hotels' Chennai Project Division for $89 million.

Top five M&A deals accounted for 78 per cent of the total values, Grant Thornton said.

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