India-targetted M&A deals dip in 2011
Thursday, 05 January 2012, 17:31 IST
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NEW DELHI: The merger and acquisition deals targetting India dipped sharply in 2011, but the overall volumes for the Asia-Pacific region remained resilient and at par with the previous year, as per a study. The total Asia-Pacific (excluding Japan) M&A volume was $543.1 billion in 2011, down slightly from 2010 level of USD 543.8 billion, despite a decline in the deal activities in second half of the year, global deal-tracking firm Dealogic said. On the other hand, the global M&A volume reached $2.81 trillion in 2011, an increase of 3 per cent from $2.74 trillion in 2010, global deal-tracking firm Dealogic has said. Within Asia-Pacific region, China was the most targeted nation in the region with USD 188.2 billion worth of deals, followed by Australia with $136.4 billion and South Korea with USD 53.6 billion. India was way behind with just $44.4 billion worth of transactions. "India-targeted volume decreased to $44.4 billion in 2011, down 32 per cent from 2010 ($65.2 billion)," Dealogic said. In the fourth quarter of 2011, India's M&A volume dipped 68 per cent from last year, as M&A worth USD 2.9 billion were announced, as against $9.2 billion in 2010. The fourth quarter of 2011 was also the lowest quarter volume since the fourth quarter of 2004 when it stood at $2.4 billion. India inbound M&A volume was $30.1 billion and accounted for 71 percent of total deals in the country, up from a 26 percent share in 2010 ($16.6 billion). A sector-wise analysis shows that oil and gas was the most targeted sector in 2011, reaching a record high of $9.9 billion. Telecom was second ($6.5 billion) and finance was third ($5.4 billion), Dealogic said. The flavour of the season in the Asia Pacific region was inbound deals as the Asia Pacific (excluding Japan) inbound volume reached a record high of USD 121 billion, up 16 per cent from $104 billion in 2010. Asia Pacific (excluding Japan) outbound volume totaled USD 118 billion, down 4 percent from 2010 when it stood at $123 billion.
Source: PTI
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