New Delhi: Merger and acquisition volume on foreign shores by companies from the world’s top four emerging nations - Brazil, Russia, India and China (BRIC) - has touched a record $54.6 billion so far in 2007, with the two Asian countries accounting for two-thirds of the total deals.
Outbound mergers and acquisitions by BRIC countries jumped more than three times in value terms to $54.6 billion from $15.8 billion in the same period of last year. This is the highest year-to- date volume on record, data compiled by global consulting firm Dealogic show.
The total number of deals, however, increased marginally to 267 in the first seven months of this year as against 233 in January-July 2006.
China leads the pack with $21 billion through 83 deals so far this year, followed by India with $15.9 billion through 110 deals.
Both China and India have significantly increased their outbound merger and acquisition activities from the year-ago period. In the first seven months of 2006, Chinese companies struck 51 deals with a total value of $6.6 billion, while Indian firms bought 93 companies with an aggregate value of $4.6 billion.
BRIC countries’ average outbound deal size increased to $305 million for so far this year from $132 million recorded last year, it said.
The top five merger and acquisition deals by BRIC countries so far this year includes China Development Bank’s acquisition of a stake in Barclays’ for $11.8 billion, followed by Aditya Birla Group flagship company Hindalco’s buyout of Canada-based Novelis for $5.7 billion.