M&A activities in India declines 54 percent
By siliconindia   |   Tuesday, 21 July 2009, 14:28 IST   |    1 Comments
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M&A activities in India declines 54 percent
Bangalore: During the first half of 2009, Indian companies were involved in a total of 136 mergers and acquisitions (M&A) deals, down 54 percent from the same period in 2008, according to a study by Venture Intelligence, a research service focused on Private Equity and M&A transaction activity in India. The deal activity was also down 28 percent compared to the second half of 2008. The average deal value during H1'09 (for the 55 deals which had announced transaction values) was $98 million, down from the average deal value of $162 million in H1'08, but higher the $60 million in H2'08, the Venture Intelligence study found. In the largest deal during the period, ONGC Videsh acquired U.K. listed Imperial Energy for $1.9 billion. This was followed by Tech Mahindra's $576 million bid for Satyam Computers and Sesa Goa's $350 million acquisition of Dempo Mining Corporation. Over 50 of the deals in H1 '09 were domestic acquisitions, as against only 40% in H1'08. The most preferred destination for Indian acquirers was USA with seven of the 31 outbound targets in H1'09 located in that country, followed by the U.K. (with 3 deals). The acquirers in eight of the 34 inbound deals were U.S. based companies, followed by French firms with five deals and German firms with four deals. The IT & ITES and Manufacturing industries accounted for the most number of acquisitions during H1'09 with an 18 percent share each. The activity in the IT & ITES industry however fell from 27 percent during the same period last year. The share of manufacturing deals fell marginally (from 20 percent).

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