M&As show signs of pick-up after 5 months

NEW DELHI: The number of strategic merger & acquisition (M&A) transactions, which declined for five straight months, starting September 2008, saw an upturn for the first time in March, as per data compiled by advisory firm Grant Thornton, reports Vivek Sinha.

The bankruptcy of US investment bank Lehman Brothers last September had accentuated global credit crisis affecting corporate deals as investors turned cautious. There were 21 M&A deals in the country worth $2.27 billion as per the latest data compiled by Grant Thornton.

The number of M&As has been dropping month-on-month since September when there were 35 transactions followed by 26 each in October and November. It fell further to 21 in December 2008 with volumes declining to 18 in January 2009.

The month of February reported M&As worth $243 million spread across 17 transactions. ���One of the key reasons for the surge in deal values in March is increase in consolidation and reorganisation activities,��� said Grant Thornton partner CG Srividya.