Companies

‘M&A activity in India down 51.4% in H1’

Our Bureau Mumbai | Updated on July 02, 2019 Published on July 02, 2019

The US, Japan and China respectively accounted for 26.3 per cent, 12.3 per cent and 10.5 per cent of the market share of India’s inbound M&A activity   -  istock.com/guvendemir

Finance, energy, technology sectors see most action

M&A activity in India fell 51.4 per cent to $41.6 billion in the first half of 2019, after a record H1 last year, according to a report by Refinitiv, a global provider of financial markets data owned by Blackstone Group and Thomson Reuters.

According to the study, target India M&A activity stood at $38.3 billion, down 53.2 per cent from the same period last year, while total cross-border deals slowed down as inbound M&A activity fell 64.5 per cent from a year ago to reach $14.3 billion.

The US, Japan and China respectively accounted for 26.3 per cent, 12.3 per cent and 10.5 per cent of the market share of India’s inbound activity. Outbound M&A transactions fell 42.6 per cent from the same period last year to $1.7 billion.

The US was the most targeted nation in terms of value and number of acquisitions by Indian companies, with 26 deals worth $665.4 million, or a 39.7 per cent market share. Domestic M&A activity also dropped 42.1 per cent in value compared with H1 2018, and totalled $24 billion.

The majority of the deal-making activity targeted the financial sector, which saw $13.7 billion in deals, up 7.2 per cent from a year ago, and captured 33 per cent of the market share.

The top two deals involving India, worth above $1 billion, targeted the financial sector, including Bandhan Bank’s pending merger with Gruh Finance for $3.2 billion.

Power Finance Corp’s acquisition of a majority stake in REC Ltd for $2.1 billion was the other billion-dollar deal involving India announced so far this year.

The Energy & Power sector captured a 13.5 per cent market share worth $5.6 billion, a 54.5 per cent decline in value compared to H1 2018.

Technology rounded up the top three industries with a 12.7 per cent market share and stood at $5.3 billion, a 270.4 per cent increase from a year ago.

Investment banking

India’s investment banking activities generated $522.9 million in H1 2019, a 10.8 per cent rise from the same period last year.

The nation’s equity capital markets reached a four-year high, raising $13.2 billion so far this year, up 28.7 per cent in proceeds from the comparable period in 2018, and the highest H1 period since 2015 ($13.7 billion).

Published on July 02, 2019
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