The Merger and Acquisition (M&A) activity in India reached $25.65 billion in the first nine months of this year, a slight decline year—on—year because of smaller domestic deal size and fewer restructurings.
According to assurance, tax and advisory firm Grant Thornton, there were 428 M&A transactions worth $25.65 billion during January—September, as against 434 deals worth $26.90 billion in the year—ago period.
“M&A remained relatively the same as last year both in terms of value and volume. Most part of the M&A deal value has actually come from inbound investments where $12.6 billion has been infused thereby demonstrating a growth of almost 40 per cent in value terms,” Grant Thornton India LLP Partner Prashant Mehra said.
There were 230 domestic deals worth $6.91 billion, registering a decline both in terms of number and value of transactions, while there were just 6 mergers and internal restructuring worth $1.32 billion. In January—September 2014, there were 33 such transactions worth $3.31 billion.
Meanwhile, cross border M&A activity increased by 24 per cent in value terms during the first nine months of this year.
In terms of sector spread, M&A activity was driven by energy and natural resources contributing 32 per cent of deal values along with IT & ITeS and pharma and healthcare together contributing another 32 per cent.
According to Grant Thornton, going forward, the outlook for domestic and inbound M&A looks bullish.
“Indian assets are expected to remain in focus as inbound and domestic M&As accelerate on the back of pickup in alternate buy out financing by PEs, and increased capital market activity — both volume and value will clearly be on an uptrend here,” Mehra said.