M&A deals continue despite global meltdown
Notwithstanding the liquidity crisis, the total number of M&A deals announced in September were 35 for total value of $3.69 billion as against 31 deals amounting to $4.63 billion in the month of August.
By ET Online |
MUMBAI: Notwithstanding the liquidity crisis, the total number of M&A deals announced in September were 35 for total value of $3.69 billion as against 31 deals amounting to $4.63 billion in the month of August.
Speaking on the trend, CG Srividya ��� Partner, Specialist Advisory Services, Grant Thornton, said, ���M&A activity has been showing sustained momentum in spite of the global meltdown. We expect the drive to continue in the near future, especially with significant opportunities to acquire overseas businesses at lower values and necessity to look at inorganic growth as an important strategy considering that organic growth is expected to slow down.���
According to Srividya, in the third quarter of 2008 (July-September), India Inc has done more acquisitions (valued at $9.2 billion) than the same period in 2007 (at $5.3 billion), irrespective of the buoyancy in the economy in 2007.
The Grant Thornton Dealtracker shows, the most significant deals have been Daiichi Sankyo Co. increasing its stake to 58 per cent in Ranbaxy Laboratories for $1.70 billion followed by UAE-based Emirates Telecommunications Corp buying 45 per cent in Swan Telecom for $0.90 billion and Suzlon Energy increasing its stake to 86 per cent in REpower Systems AG for $0.39 billion.
There were nine domestic deals (both acquirer and target being Indian) with value announced at $0.04 billion, and 26 cross-border deals with an announced value of $3.65 billion.
Out of the total cross border deals, there were 20 outbound deals (domestic companies acquiring business outside India) valued at $1.03 billion and six inbound deals (international companies or their subsidiaries acquiring Indian business) valued at $2.62 billion.
The total number of M&A deals during the first nine months of 2008 was 381 and valued at $26.43 billion as against 527 deals amounting to $ 49.33 billion during the corresponding period in 2007.
The total number of private equity deals announced during the month of September 2008 was 16 valued at $600 million as against 31 deals amounting to $944 million in the month of August. The total number of PE deals during the first nine months of 2008 stands at 262 valued at $9.29 billion as against 285 deals amounting to $11.73 billion during the corresponding period in 2007.
Explained Sanjay Randhar, director, India Knowledge Fund - S. S. Venture, ���due to the market meltdown, PE players have become cautious. PE deals are now taking longer time to be inked. It has to strike a balance between what is happening in the market and expectation of valuations by promoters.���
There were two IPOs which raised $65.61 million in September alone. The total funds raised through IPOs during Jan-Sep 2008 was $ 4,471.01 million from 41 IPOs.
Speaking on the trend, CG Srividya ��� Partner, Specialist Advisory Services, Grant Thornton, said, ���M&A activity has been showing sustained momentum in spite of the global meltdown. We expect the drive to continue in the near future, especially with significant opportunities to acquire overseas businesses at lower values and necessity to look at inorganic growth as an important strategy considering that organic growth is expected to slow down.���
According to Srividya, in the third quarter of 2008 (July-September), India Inc has done more acquisitions (valued at $9.2 billion) than the same period in 2007 (at $5.3 billion), irrespective of the buoyancy in the economy in 2007.
The Grant Thornton Dealtracker shows, the most significant deals have been Daiichi Sankyo Co. increasing its stake to 58 per cent in Ranbaxy Laboratories for $1.70 billion followed by UAE-based Emirates Telecommunications Corp buying 45 per cent in Swan Telecom for $0.90 billion and Suzlon Energy increasing its stake to 86 per cent in REpower Systems AG for $0.39 billion.
There were nine domestic deals (both acquirer and target being Indian) with value announced at $0.04 billion, and 26 cross-border deals with an announced value of $3.65 billion.
Out of the total cross border deals, there were 20 outbound deals (domestic companies acquiring business outside India) valued at $1.03 billion and six inbound deals (international companies or their subsidiaries acquiring Indian business) valued at $2.62 billion.
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The total number of M&A deals during the first nine months of 2008 was 381 and valued at $26.43 billion as against 527 deals amounting to $ 49.33 billion during the corresponding period in 2007.
The total number of private equity deals announced during the month of September 2008 was 16 valued at $600 million as against 31 deals amounting to $944 million in the month of August. The total number of PE deals during the first nine months of 2008 stands at 262 valued at $9.29 billion as against 285 deals amounting to $11.73 billion during the corresponding period in 2007.
Explained Sanjay Randhar, director, India Knowledge Fund - S. S. Venture, ���due to the market meltdown, PE players have become cautious. PE deals are now taking longer time to be inked. It has to strike a balance between what is happening in the market and expectation of valuations by promoters.���
There were two IPOs which raised $65.61 million in September alone. The total funds raised through IPOs during Jan-Sep 2008 was $ 4,471.01 million from 41 IPOs.
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