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The value of announced mergers and acquisition (M&A) deals involving India has declined 35.7 per cent in the first quarter of 2012 to $12 billion compared to the corresponding period last year, said the latest Thomson Reuters report.
The decline was mainly due to the absence of mega-transactions such as the Reliance-BP deal ($9 billion) in early 2011. The average deal size also declined. It declined to $101.7 million year-to-date, from $126.1 million in first quarter of 2011 as the majority of India's M&A transactions fell below $1 billion, said the report.
However, despite this trend, domestic M&A activity so far grew by 43.3 per cent year-on-year to $4.3 billion during the first quarter of calendar 2012. Financials took the lion's share of M& A activities, at 45.9 per cent followed by telecommunications at 18.3 per cent.
Industry breakdown showed that materials accounted for 35.9 per cent of Indian-involved acquisitions worth $4.3 billion, up three-times from $1.3 billion in first quarter of 2011. This was strengthened by the merger of Sesa Goa Ltd with Sterlite Industries in a deal valued at $3.9 billion, said the report.
Indian acquisitions overseas declined this year declined to $819.4 million, down 50.8 per cent from the comparable period last year ($1.7 billion).
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