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M&A deals zoom 270% to $18.3 bn in Jan-Mar

The merger and acquisition deals in India has risen by 270 per cent as the country saw 57 deals happening in the first quarter this year valued at $18.3 billion.

Mail Today Bureau   New Delhi     Last Updated: April 16, 2011  | 00:00 IST

The merger and acquisition (M&A) deals in India has risen by 270 per cent as the country saw 57 deals happening in the first quarter this year valued at $18.3 billion, underlining the attractiveness of the Indian market, says a new report on M&A by Mergermarket, an independent M&A intelligence service.

"The data reveals a significant increase (270 per cent) in deal value at $18.3 billion compared to the same quarter last year," the report said. Statistics shows that 35 out of the 57 transactions of Indian companies announced in the first quarter of 2011 were inbound deals, compared to 27.1 per cent for China and 14.3 per cent for Japan, cementing the fact that India is an attractive investment destination for global investors.

"Inbound M&A drove deals in Q1 2011 with India proving itself an attractive investment destination as it lured buyers in the energy, insurance and IT space," Anjali Naik, deputy editor at Mergermarket Asia Pacific, said. "Despite the ongoing wave of corporate scandals and political corruption, India will continue to entice suitors on the back of strong fundamentals such as its growing population," Naik said.

Commenting on the future trends, Naik added, "Buyers from typical markets such as the US, Europe and Japan could be joined by those from Korea and Russia." She also added that deals across borders in consumer, financial services, energy, industrial, engineering and chemicals will continue while overseas activity in energy, consumer and IT are also expected to grow. In term of value the total worth of inbound Indian deals ($16.9 billion) reaches unprecedented figures, according to Mergermarket data.

Morgan Stanley tops the financial advisor league table by value, having advised on $12.9 billion worth of deals, and Yes Bank came out on top in terms of value, participating in five deals this quarter. M&A deals zoom 270% to $18.3 bn in Jan-Mar

Courtesy: Mail Today 

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