M&A deals worth $12.1 billion recorded in Q1 2015: report
In terms of number of deals, the first quarter saw 86 deals against 76 deals in the same period last year
Mumbai: Merger and acquisition (M&A) activity in India witnessed a jump of 236% to $12.1 billion in the first quarter of 2015 as compared with $3.6 billion a year ago, on the back of big-ticket deals, according to the M&A intelligence service Mergermarket’s India trend report released on Friday.
In terms of number of deals, the first quarter saw 86 deals against 76 deals in the same period last year. The jump in M&A activity was helped by two big-ticket deals valued over $1 billion, the report said. “The average deal value standing at $227.7 million came close to beating the five-year record high of $243.5 million reached in Q2 2014," it said.
The biggest deal in the quarter was the acquisition of 23% stake in wind turbine manufacturer Suzlon Energy Ltd for $3.1 billion by a consortium led by billionaire Dilip Shanghvi, promoter of pharma company Sun Pharmaceutical Industries Ltd.
The industrials and chemicals sector was the most actively targeted sector in the first quarter of 2015, attracting 13 deals worth $4.1 billion, an increase of 186% compared with the total deal value recorded in 2014. Energy, mining and utilities sector recorded the highest deal count of all sectors with 15 deals, also the highest quarterly deal count within the sector on Mergermarket record, the report said.
According to the report, inbound deals were valued at $5.8 billion in the quarter, up 31.3% compared with the previous quarter. “In terms of volume, however, there were 10 less inbound deals from the last quarter announced, with a total of 37 announcements, highlighting larger cap deals entering the M&A market," the report pointed out.
Private equity buyout deals fell 15.4% to 22 transactions in the quarter compared with the previous year. However, total deal value rose 73.7%, to $1.7 billion. The increase in buyout deal value reflects a growing interesting of larger-sized investment in buyouts, the report said.
The technology sector held the dominant position in buyout activity with seven deals worth $806 million accounting for 48.4% of market share. The biggest buyout deal in the space was $575-million acquisition of a 25% stake in One97 Communication Ltd by Ant Financial Services Group, which is jointly owned by SAIF Partners and Alibaba Group Holding Ltd.
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