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.
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.