The Hindu Business Line : ‘M&A activity declines in Q2’

New Delhi, Oct 16 The global slowdown and absence of big ticket overseas acquisitions by India Inc have led to a sharp decline in the merger and acquisition activities by domestic firms in the international market during the second quarter compared to the first this fiscal, according to an Assocham study.

The value of overseas M&A deals struck by Indian companies have gone down by 64 per cent from $10.3 billion in first quarter to $3.6 billion in the second quarter with Europe recording the biggest drop of 88 per cent. However, thanks to the M&A activities continuing in the IT and ITeS space, the US has reported almost the same level of deals incurred by the Indian firms as the previous quarter, according to the study.

Activity in steel sector

While the Indian buy-outs of US companies were recorded at $2.9 billion in second quarter and $2.95 billion in first quarter, the major setback took place in European region. M&A deals announced by Indian firms in Europe fell from $2.8 billion to $326 million. While steel sector ruled the roost owing to Tata-Corus deal in the first quarter, IT and ITeS dominated the M&As for the second quarter valued at $1.56 billion. While the steel sector had M&A valuation of $5.4 billion between April and June, it dropped to a mere $940 million between July and September.

The study tracked a total of 65 deals in the first quarter and 60 in the second across sectors such as IT and ITeS, hospitality, steel, communications, infrastructure, textile, telecom and financial services.

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