New Delhi: India-focused merger and acquisition deals during the January-September period reached $24.8 billion through 309 transactions, registering a jump of 10 percent over the same period last year, says a report.
According to global deal tracking firm Mergermarket, there were 224 M&A deals worth $22.5 billion during the first nine months of the last year. The July-September quarter witnessed $6.3 billion worth deals, a 37.5 percent decrease over April-June period, but was up 18.9 percent in value terms as against July-September period of 2014, when there were deals worth $5.3 billion.
A sector-wise analysis shows that energy, mining and utilities was the most active with 28 deals worth $3.7 billion accounting for 15 percent of the total M&A deal value. “Deal value in this space was bolstered by the $2.2 billion acquisition of Cairn India by Vedanta, the largest deal targeting the country to-date in 2015,” said the report.
The report further said inbound deals were the flavour of the season, with 110 deals worth $24.4 billion announced so far in 2015—highest year-to-date value since 2012. International bidders took up the majority of these deals, with $12 billion-worth (43.6 percent) of deals carried out by the companies outside of the Asia-Pacific region.
The U.S. has shown strongest interest in M&A transactions within India, investing in 63 deals worth $6.3 billion, with U.S. companies carrying out seven of the top ten inbound deals till September this year. Meanwhile, India’s confidence in overseas investments, seems to have returned as there were 50 deals worth $4.4 billion announced till September this year, up 163.4 percent over the last year when the total deal value stood at $1.7 billion, by way of 57 deals.
The increase in outbound deal activity can be mainly credited to the $1.3 billion acquisition of Russia-based Vankorneft by ONGC Videsh Ltd. All data is based on transactions over $5 million and is based on Mergermarket’s M&A deals database. Deals with undisclosed deal values were included where the target’s turnover exceeded $10 million.
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