India Inc's M&A spree declines further, sees 92 pc fall in Feb
India Inc's merger and acquisition activity decelerated further to $243.66 million in February this year - a significant decline of 92 per cent over the same period last year, thanks to a deepening global economic crisis.
By PTI |
NEW DELHI: India Inc's merger and acquisition activity decelerated further to $243.66 million in February this year - a significant decline of 92 per cent over the same period last year, thanks to a deepening global economic crisis.
The total number of M&A deals announced in the month of February stood at 17, with a total announced value of $243.66 million as against 36 deals amounting to $2.95 billion in the corresponding period a year ago, according to global consultancy firm Grant Thornton.
Even on a month-on-month basis, the decline is significant as in January 2009, 18 deals were announced with a total value of $970.85 million.
Commenting on the findings, Grant Thornton Specialist Advisory Services Partner C G Srividya said, "Deal values for M&A in February have shown a considerable decline over the same period in 2008. We are also seeing that several transactions, which were under negotiations in February, have started materialising and have been announced in March 2009. We expect to see a much better level of activity in March."
Explaining further she said there have been several transactions with undisclosed values as well as mergers and restructuring activities which have happened in this period and would significantly add to the deal values.
"Considering that these are primarily non-cash transactions and mostly through share swap, it is not possible to capture the exact values," Srividya added.
Out of the 17 merger and acquisition deals, five were domestic with an announced value of $3.66 million and 12 cross-border deals with an announced value of $240 million.
Out of the 12 cross-border deals, four were outbound deals wherein Indian companies acquired businesses outside India with a value of USD 133 million and eight were inbound deals where global companies or their subsidiaries acquired Indian businesses with an announced value of $107 million.
Meanwhile, the private equity space in February has shown a marginally better performance than January.
The total number of private equity deals announced during February stood at 17 with an announced value of $339.66 million as against 25 deals amounting to $1.30 billion in the month of February 2008.
The primary market front also remained muted as no IPOs were announced during the month of February.
According to Grant Thornton's latest issue of Dealtracker, "The estimated debt raised through public issue for the month of February 2009 was $333.33 million while the total amount raised through IPO during the period between January and December 2008 was USD.
The total number of M&A deals announced in the month of February stood at 17, with a total announced value of $243.66 million as against 36 deals amounting to $2.95 billion in the corresponding period a year ago, according to global consultancy firm Grant Thornton.
Even on a month-on-month basis, the decline is significant as in January 2009, 18 deals were announced with a total value of $970.85 million.
Commenting on the findings, Grant Thornton Specialist Advisory Services Partner C G Srividya said, "Deal values for M&A in February have shown a considerable decline over the same period in 2008. We are also seeing that several transactions, which were under negotiations in February, have started materialising and have been announced in March 2009. We expect to see a much better level of activity in March."
Explaining further she said there have been several transactions with undisclosed values as well as mergers and restructuring activities which have happened in this period and would significantly add to the deal values.
"Considering that these are primarily non-cash transactions and mostly through share swap, it is not possible to capture the exact values," Srividya added.
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Out of the 17 merger and acquisition deals, five were domestic with an announced value of $3.66 million and 12 cross-border deals with an announced value of $240 million.
Out of the 12 cross-border deals, four were outbound deals wherein Indian companies acquired businesses outside India with a value of USD 133 million and eight were inbound deals where global companies or their subsidiaries acquired Indian businesses with an announced value of $107 million.
Meanwhile, the private equity space in February has shown a marginally better performance than January.
The total number of private equity deals announced during February stood at 17 with an announced value of $339.66 million as against 25 deals amounting to $1.30 billion in the month of February 2008.
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The primary market front also remained muted as no IPOs were announced during the month of February.
According to Grant Thornton's latest issue of Dealtracker, "The estimated debt raised through public issue for the month of February 2009 was $333.33 million while the total amount raised through IPO during the period between January and December 2008 was USD.
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