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India Inc's M&A deals up 12 per cent in H1 2013

The overall merger & acquisition (M&A) deals involving Indian companies clocked 12.3 per cent growth in the first half of 2013 at $20.1 billion over the year ago period.

twitter-logo PTI   New Delhi     Last Updated: July 3, 2013  | 00:00 IST

The overall merger & acquisition (M&A) deals involving Indian companies clocked 12.3 per cent growth in the first half of 2013 at $20.1 billion over the year ago period.

The average deal size climbed up to $82.8 million as more deals were announced above $1 billion in value, compared to $73.1 million in the year ago period.

According to a Thomson Reuters report: "The second quarter of 2013 saw overall domestic M&As totaling $15.3 billion, a whopping 214.3 per cent sequential jump from the first quarter, driven by a $5.4 billion open offer in Hindustan Unilever by Unilever, taking the total M&As to $20.1 billion in the first half of the year."

However, domestic M&As declined by a whopping 68.3 per cent at $2.3 billion, from the year ago period, marking the lowest first half-level since 2004, when it stood at $1.2 billion.

The bulk of domestic activity focused on the financials sector with $657.3 million, down 69.4 per cent from last year, the report said.

Total cross-border M&As grew 70.8 per cent to $17.0 billion compared to the first half of 2012 as inbound and outbound M&As rose 32.4 per cent and 294.5 per cent, respectively. Of this, completed M&As stood at $12 billion, up 16.9 per cent in H1 of the current year over the same period last year.

Giving a break-up, the report said consumer staples captured 28.2 per cent, or $5.7 billion, accounting for the majority of the deals involving domestic companies, which is a 435.2 per cent jump over the same period last year.

This uptick was driven by Unilever's pending open offer to raise its interest in HUL to 75 per cent by acquiring a 22.52 per cent for a total value of $5.4 billion. This is the biggest deal on record for consumer staples involving domestic companies.

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