New Delhi: Merger & acquisition activities in the country have gained momentum with the total deal volume in June touching $850.62 million, which is much higher than in May.
The total number of M&A deals announced in the month of June this year stood at 26 with a total announced value of $850.62 million, according to global consultancy firm Grant Thornton.
This is substantially high from $118.83 million worth of deals in May and $427.55 million transactions in April.
“There has been a reasonable amount of M&A activity in June 2009. While this has been higher than April and May 2009, it is significantly lower than last year’s levels,” Grant Thornton Partner (valuation services) C G Srividya said.
In June 2008, Indian companies struck 49 deals worth $5.32 billion, the report said.
There were 13 domestic deals where both acquirer and target were Indian, with an announced value of $587.74 million and as many cross-border deals valuing at $262.88 million during the month.
Three of the cross border deals were outbound deals where Indian companies acquired business outside India with a value of $139 million.
There were 10 inbound deals where international companies or their subsidiaries acquired Indian businesses with a total value of $123.88 million, it said.
”The deal volume in June 2009 has been the highest for this year and we expect this to sustain in the near future,“ Srividya said.
The total number of M&A deals during the first 6 months of this year stand at 123, with an announced value of $4.88 billion as against 269 deals amounting to $16.10 billion during the corresponding period in 2008, Thornton added.
The most significant deals in the month of June include Sesa Goa’s agreement for acquiring VS Dempo & Co for $388.89 million, followed by Indian Hotels’ acquisition of 85% stake in ELEL Hotels and Investments for $151.11 million.
Other important deals include Bharati Shipyard increasing stake in Great Offshore for $15.22 million and Dabur Pharma increasing stake in Fem Care to 92.15% for $12 million.