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Merger and acquisition (M&A) deals in the first half of this year dipped 19 per cent to $24.6 billion, the lowest in last three years, according to a study by Grant Thornton, a business consultancy firm.
Besides slow down in global economy and tight liquidity in the domestic market, concern over the Indian regulatory framework (General Anti-Avoidance Rules, 2G telecom spectrum issues) has taken a toll on M&A deals.
Private equity deals were down 45 per cent at $3.8 billion (218 deals) compared to first half of last year. Sectors such as healthcare and internet space attracted PE investments.
The total value of Indian companies acquiring businesses overseas more than halved to $2.1 billion (48 deals) against $5.9 billion (86 deals) recorded last year. Foreign companies acquired Indian business worth $4.9 billion in 77 deals against $20.5 billion (58 deals) last year.
Domestic deals were down 29 per cent at $2.4 billion (131 deals) against $3.4 billion (83 deals). There were eight IPOs listed in the first half of 2012 raising a sum of $0.27 billion from the public.
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