Economy

Merger & acquisition deals up 2.8% in Q1, 2014

| | Updated on: Apr 02, 2014

The value of announced merger & acquisition (M&A) deals involving Indian companies increased by a mere 2.8 per cent at $5.2 billion during the first quarter of 2014 against the year-ago period but saw a 27.4 per cent quarterly decline from the fourth quarter of 2013, according to an M&A Review Report By Thomas Reuters. 

Deal count also slowed down as number of M&A transactions dropped 29.5 per cent to 232 from 329 announced deals during the first quarter of 2013. However, completed M&A deals involving Indian companies totalled $8.4 billion, a 37 per cent increase compared to the first quarter of 2013.

The average M&A deal size for transactions with disclosed values involving India increased to $56.3 million this first quarter of 2014 against $34 million over the same period last year, as more deals of $500-million-and-above were announced this quarter, said the report. 

The report also pointed that domestic M&A stood in the first quarter of 2014 stood at $2.7 billion, up 111.2 per cent compared to the first quarter of 2013. Of this total, the bulk focused on the energy and power sector with $1.9 billion, an eleven-fold increase from the same period last year.  Energy & Power captured 71.3 per cent of India’s domestic M&A activity this year, according to the report.

“Total cross-border M&A fell 38.7 per cent to $1.9 billion compared to the first quarter of 2013 while inbound M&A in India declined 49.4 per cent and outbound M&A increased 57.2 per cent over the same period last year,” the report said.

Published on April 02, 2014

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