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Buoyant on the mega Vodafone India-Idea Cellular deal and a strong economic outlook, Indian M&A deals rose 23 per cent to $15.8 billion in the first quarter of the calendar year from the year-ago quarter. However, the number of deals stood almost the same at 252 (253).
The $11-billion Vodafone India and Idea Cellular mega deal accounts for nearly 74 per cent of the total value in the quarter, barring which the total deal value was $4.4 billion.
The diversified industrial products sector led the M&A activity in terms of volume, accounting for 31 deals ($533.4 million), according to an EY report.
“The deal environment looks conducive on the back of a strong economic outlook, and healthy capital markets, accompanied by the Indian government’s increasing focus on improving infrastructure and expanding digital reach across the country.
The report, EY’s Transactions Quarterly, also said the majority of these acquisitions were either domestic or inbound in nature with acquisition targets in the power and electrical equipment and packaging segments. Domestic activity remained the key contributor to M&A activity in India, accounting for 87 per cent and 67 per cent of the total value and volume, respectively
Sluggish cross-border dealsCross-border M&A activity slowed, both in value and volume terms. While the value declined to $2 billion ($7.7 billion), volume weakened to 83 deals (104 deals).
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