India-Targeted M&A Deals Worth $39Billion This year: Dealogic

Wednesday, 28 September 2011, 19:28 IST
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The value of India-focused merger and acquisition (M&A) deals touched USD 39 billion in the first nine months of this year, a significant 31percent decline vis-a-vis the corresponding period last year, global deal tracking firm Dealogic says. According to Dealogic, "India-targeted volumes (value) totalled USD 39 billion in the first nine months of 2011, down 31percent from USD 56.1 billion on the same period of 2010." As per Dealogic, despite ranking among the Top 3 locations for M&A deals in the January-September, 2011, period, India was also the country that witnessed the maximum decline in the combined value of M&A deals. The combined value of M&A deals in the third quarter was just USD 4.7 billion, the lowest since the second quarter of 2005, when the deal value stood at USD 4.1 billion. Meanwhile, despite a 12% dip in the third quarter, the Asia-Pacific (excluding Japan) region witnessed M&A deals with the highest combined value for a nine-month period on record, at USD 406.1 billion in 2011, up 13% in comparison to the year-ago period. India was the third-most targeted nation in the Asia-Pacific region, accounting for M&A deals worth USD 39 billion, behind China (USD 134.7 billion) and Australia (USD 104.9 billion), Dealogic said. In the Asia-Pacific region, the nations that witnessed a slump in deal activity in the nine-month period include India (down 31percent), Malaysia (15 percent ) and Singapore (4 percent). A sector-wise analysis of the Asia-Pacific shows that real estate witnessed the biggest M&A deals in terms of their combined value during the period -- at USD 48.9 billion -- followed by mining (USD 48.3 billion) and finance (USD 42.5 billion), the report said. "The USD 12.4 billion bid for Foster's Group by SABMiller was the largest deal in the Asia-Pacific (excluding Japan) in the first nine months of 2011 and is the only over USD 10 billion food & beverage deal on record in the region," Dealogic added. Meanwhile, the value of M&A deals worldwide totalled USD 2.15 trillion during the first nine months of 2011, a 7 percent rise vis-a-vis the year-ago period. The value of global M&A deals in the January-September period witnessed an increase despite the fact that their combined worth in the third quarter was just USD 599 billion, down 23% compared to USD 783 billion in the third quarter of 2010. The value of global M&A deals in the third quarter is the lowest since the second quarter of 2010, when it stood at USD 592.9 billion, Dealogic said.
Source: PTI