M&A deals flow slows down amid economic concerns

MUMBAI: The Indian M&A space attracted lesser amount of deals in May amid global economic concerns, domestic worries over lack of government policy initiatives, and also on account of depreciation in the Indian rupee.

There were total 68 deals (including private equity transactions) worth $3.9 billion, compared with 100 deals valued at $5.5 billion in 2011 and 72 deals amounting to $8.6 billion in 2010, according to data compiled by accountancy firm Grant Thornton.

The total value of outbound deals (Indian companies acquiring businesses outside India) was $0.95 billion (8 deals) in May, compared with $2.26 billion (20 deals) and $4.00 billion (19 deals) during the corresponding month in 2011 and 2010, respectively. The total value of inbound deals (foreign companies or their subsidiaries acquiring Indian businesses) was $2.10 billion (9 deals), compared with $1.32 billion (8 deals) and $3.83 billion (5 deals), respectively.

In the PE space, 27 deals worth $0.35 billion were transacted in May 2012, compared with $1.14 billion (43 deals) and $0.26 billion (15 deals) during the corresponding month in 2011 and 2010, respectively.

Among notable M&A deals, Piramal Healthcare acquired Decision Resources Group for $680 million, marking its entry into the global healthcare database and consulting services industry, said Grant Thornton in its report titled Dealtracker for May.