Indian mergers and acquisitions reach $40 Billion
By siliconindia   |   Friday, 25 June 2010, 23:05 IST   |    1 Comments
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Indian mergers and acquisitions reach $40 Billion
Mumbai: Within half a year from January to June 2010, the mergers and acquisitions in India increased four times. This increase has been made possible due to the takeovers by Abbot Laboratories and Bharti Airtel. With the demands in the developed markets, the global firms are ready to pay extra amount for the Indian companies where they can come across a steady growth of scope with a billion plus population. This increase has been made possible due to the takeovers by Abbot Laboratories and Bharti Airtel. This supports the view that corporate are positive about earning prospects. In the total Asian deals of $242.1 billion from 5,078 deals, Indian transactions account for sixth of the total Asian deals. Bharti's acquisition of Zain made a 21 percent rise to top the Asian list. India's M & As reached $40 billion in the first six months of the year Raj Balakrishnan, Head of M&A at BankofAm Merrill Lynch stated, "The 2007 calendar has seen outbound M& As pick up substantially on the back of good economic growth and valuations." Mukesh Ambani's Reliance Industries pursues active investments the U.S. shale gas ventures with 45 percent stake in Pioneer Natural Resources. India's telecom sector is at the top with deals valued at $13.8 billion while the healthcare sections with Abbot's purchase of Piramal, accounts for a business of $3.72 million. Abbott's acquisition is highest inbound deal in the health care sector on record. It is also the third-largest inbound deal in India on record. US companies topped the local purchases with more than half the value of the deal. Balakrishnan says that, the inbound M&As activity would pick up very soon as the international companies realize their potentiality. The value of energy acquisitions by India, accounts for $8.8 billion which is a triple of the previous year.

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