India Inc goes slow on M&A in second quarter: Assocham
: Global slowdown and absence of significant overseas acquisitions by India Inc have led to a sharp decline in the merger and acquisition activities by domestic firms in foreign market during the second quarter.
By PTI |
NEW DELHI: Global slowdown and absence of significant overseas acquisitions by India Inc have led to a sharp decline in the merger and acquisition activities by domestic firms in foreign market during the second quarter, according to Assocham survey.
The chamber's Eco Pulse (AEP) study on "M&A in 2nd Quarter of 2007-08" revealed that the value of M&A deals abroad by the Indian companies have gone down by 64 per cent from USD 10.3 billion in first quarter to $3.6 billion in the second quarter, with Europe recording the biggest drop of 88 per cent.
"M&A deals announced by Indian firms in Europe fell from 2.8 billion dollar in quarter one to 326 million dollar in Q2," a chamber statement said.
India this quarter has clinched the same number of M&As as the US in the IT, ITes space.
The Indian buy-outs of US companies were recorded at 2.9 billion dollar in second quarter and 2.95 billion dollar in first quarter.
According to a recent report in the Financial Times, the overall merger deals in the international markets have slipped 42 per cent fall during July-September period, Assocham President Venugopal Dhoot said.
The AEP tracked 65 deals in Q1 and 60 in Q2 across a wide range of sectors based on the announcements made by the firms.
In terms of sectoral analysis, steel ruled the roost owing to Tata-Corus deal in the first quarter, while IT and ITes dominated the M&As for Q2 valued at 1.56 billion dollar.
The steel sector had M&A valuation of 5.4 billion dollar between April and June, dropping to a mere 940 dollar million between July and September, Dhoot added.
.
The chamber's Eco Pulse (AEP) study on "M&A in 2nd Quarter of 2007-08" revealed that the value of M&A deals abroad by the Indian companies have gone down by 64 per cent from USD 10.3 billion in first quarter to $3.6 billion in the second quarter, with Europe recording the biggest drop of 88 per cent.
"M&A deals announced by Indian firms in Europe fell from 2.8 billion dollar in quarter one to 326 million dollar in Q2," a chamber statement said.
India this quarter has clinched the same number of M&As as the US in the IT, ITes space.
The Indian buy-outs of US companies were recorded at 2.9 billion dollar in second quarter and 2.95 billion dollar in first quarter.
According to a recent report in the Financial Times, the overall merger deals in the international markets have slipped 42 per cent fall during July-September period, Assocham President Venugopal Dhoot said.
ADVERTISEMENT
The AEP tracked 65 deals in Q1 and 60 in Q2 across a wide range of sectors based on the announcements made by the firms.
In terms of sectoral analysis, steel ruled the roost owing to Tata-Corus deal in the first quarter, while IT and ITes dominated the M&As for Q2 valued at 1.56 billion dollar.
The steel sector had M&A valuation of 5.4 billion dollar between April and June, dropping to a mere 940 dollar million between July and September, Dhoot added.
.
Download
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
Download
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
ADVERTISEMENT
