Value of M&A deals falls 72%

Value of M&A deals falls 72%
PTI
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First Published: Mon, Apr 21 2008. 12 12 AM IST
Updated: Mon, Apr 21 2008. 12 12 AM IST
New Delhi: The value of merger and acquisition (M&A) deals announced since the beginning of this year has dropped 71.5% in India as against the comparable period of 2007.
The number of deals involving Indian companies this year stood at 125 at the end of March, with a total value of $9.64 billion (Rs38,560 crore), according to global consultancy firm Grant Thornton Llp. This compares with 148 deals with a value of $33.85 billion in the first three months of 2007.
The country’s 2008 tally includes a significant contribution from Tata Motors Ltd’s $2.3 billion acquisition of Jaguar and Land Rover from Ford Motor Co. of the US.
Industry experts say the crisis in global financial markets is acting as a dampener for M&A deals.
Although, the valuations of the companies have gone down, the banks are cutting down their exposure to funding the deals.
While the value of M&A deals announced across the world crossed $1 trillion this year, the figure is significantly below year-ago level of $1.4 trillion, according to data complied by global consulting firm Dealogic.
India’s share in the global tally is just about 1%, or about $10 billion.
This is less than half of about 2.5% share in the comparable period of 2007.
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First Published: Mon, Apr 21 2008. 12 12 AM IST