According to consultancy firm Grant Thornton’s latest deal tracker, as many as 56 M&A transactions worth $9.7 billion have taken place this year.

Mergers and acquisitions by Indian firms have clocked over $41 billion this year, indicating a strong rebound of deal activity. Last year, the deal size was $39 billion.

The month of November too, has seen a massive jump in activity.

The total mergers and acquisitions (M&A), and private equity (PE) deals in the month of November were valued at $10.11 billion (with 91 deals) as compared to $1.95 billion (with 109 deals) in the corresponding month of 2011. In November 2010, it was $4.33 billion (with 61 deals).

According to consultancy firm Grant Thornton’s latest deal tracker, as many as 56 M&A transactions worth $9.7 billion have taken place this year.

Raja Lahiri, Partner, Transaction Advisory Services at Grant Thornton said, “November saw $3-billiondeals in the M&A space.

The first was the ONGC-Kashagan field $5 billion deal, then Diageo-USL’s $2 billion deal and lastly, Gulf Oil-Houghton International's $1.05 billion deal. All the three were cross-border deals.”

The month also witnessed Magma Fincorp agreeing to buy GE Money Housing Finance and the home equity loan portfolio of GE Money Financial Services for $290 million, marking the non-banking financial company’s entry into the affordable and middle-income housing finance sector.

Film exhibitor PVR agreeing to acquire 69.27 per cent in Cinemax India in an all-cash deal worth $72 million making PVR the leader in the movie exhibition business in India, was another notable deal.

The PVR deal was backed by PE funding by Multiples and L Capital.

PE firms have also been showing interest in the dairy space with Rabo PE and Abraaj Capital investing in Prabhat Dairy, followed by IDFC PE investing in Parag Milk Foods two months ago.

Though the number of deals in the country declined from 71 a year ago in value terms, it has increased significantly from around $1.4 billion clocked last year.

Cross-border deals were the flavour of the month, with transactions worth $8.8 billion last month. The total value of outbound deals in November, with Indian companies acquiring businesses outside India, amounted to $6.7 billion. Inbound deals of foreign companies taking over Indian businesses added up to $2.1 billion, the research firm has said.

Stating that the series of foreign investment reforms announced by the Union Government seem to have had a positive impact on India Inc, the report notes that a number of companies are ready to use their massive cash piles to scout for suitable acquisitions in the international market.

The total value of outbound deals, wherein Indian companies acquired businesses outside India in November 2012, was $6.74 billion (with 15 deals) as compared to $0.73 billion, with 10 deals in November 2011, and $1.94 billion, with 16 deals in November 2010.

(This article was published on December 10, 2012)
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