M&A st develops foreign flavour in May
Cross-border deal value has gone up nearly 16 times at $4.11 bn as compared to domestic deals in May.
By PTI |
NEW DELHI: India Inc is showing a distinct foreign flavour in its M&A deals, with the cross-border deal value going up nearly 16 times at $4.11 billion as compared to the value of domestic deals in May, a latest report shows.
According to data compiled by global consultancy firm Grant Thornton, 42 cross-border deals with an announced value of 4.11 billion dollars were carried out by Corporate India in May, while 32 domestic M&As garnered just 0.26 billion dollars to their kitty.
The total number of M&A deals announced in May was worth $4.37 billion, with United Spirits buying out Whyte & Mackay for 1.11 billion dollars, and Suzlon Energy's controlling stake in REpower for 1.7 billion dollars, being the most significant deals of the month, Thorton said.
The M&A deals in the month totaled 74 with announced values of 4.37 billion dollars as against 57 deals worth 3.98 billion dollars in April, Thornton's Dealtracker report said.
Out of the total cross-border deals, 30 were outbound with Indian companies acquiring businesses outside the country for a value of 3.79 billion dollars. There were 12 inbound deals (international companies acquiring Indian businesses) with an announced value of close to 0.32 billion dollars.
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Besides, the total number of private equity deals announced during the month stands at 24 with an announced value of 1.56 billion dollars as against 23 deals with a total announced value of 0.44 billion dollar in April.World Bank's private sector arm, International Finance Corporation (IFC) invested 30 million dollars in Kanoria Chemicals and Electrotherm India in May.
Private equity investor Sequoia Capital invested about $7 million in IT firm Minglebox.com, while Reliance Capital picked up a stake in Precision Wires for $4.12 million, the data show.
Some of the major inbound cross-border deals include French banking major BNP Paribas's acquisition of 45 per cent stake in financial services firm Sundaram Home Finance for $45.81 million. Besides, Standard Chartered Bank bought 49 per cent stake for $34.19 million in UTI Securities and Interpublic Group hiked its stake in Lintas India to 100 per cent for $100 million.
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In March and April, there were 111 M&A deals with a total value of about $6.12 billion . These included 62 domestic deals with a value of $0.73 billion.The number of inbound cross-border deals has been 17 with a value of $1.98 billion and the number of outbound cross border deals was 32 with a value of $3.41 billion.
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