Markets round-up: M&A activity at 22-month high in September

One of the key reasons for the spike last month is the Reliance Communications Ltd and Aircel Ltd mega merger valued at $3.6 billion


Overall M&A transaction values in  2016 so far increased by 33% from a year earlier because of a 73% increase in the domestic transaction values along with big-ticket mergers and restructurings, according to Grant Thornton. Graphics by Naveen Kukar Saini/Mint
Overall M&A transaction values in 2016 so far increased by 33% from a year earlier because of a 73% increase in the domestic transaction values along with big-ticket mergers and restructurings, according to Grant Thornton. Graphics by Naveen Kukar Saini/Mint

M&A (mergers and acquisitions) deals touched a 22-month high of $5.6 billion in September, according to Grant Thornton India Llp.

The measure stood at $7.1 billion in November 2014.

One of the key reasons for the spike last month is the Reliance Communications Ltd and Aircel Ltd mega merger valued at $3.6 billion.

Overall M&A transaction values in 2016 so far increased by 33% from a year earlier because of a 73% increase in the domestic transaction values along with big-ticket mergers and restructurings, according to Grant Thornton.

Indian apparel exports to remain moderate

Increasing competition from Bangladesh and Vietnam coupled with the passage of the Trans-Pacific Partnership (TPP) trade agreement would keep India’s apparel exports moderate, CARE Ratings said in a report.

TPP would create a free trade zone among its 12 member nations.

Despite this, the rating agency believes that India has the scope to boost its share in global apparel exports pie, courtesy an expected increase in Chinese apparel prices along with China’s reduced focus on this segment.

Also, what keeps Indian apparel exports relatively protected is the fact that China, the largest apparel exporter in the world, is not a party to TPP.

Major Indian ports get busier

Latest data on goods movement in the major ports of India suggests that economic recovery is stronger and that the shipping industry could be reviving.

Major Indian ports handled about 50.7 million tonnes of cargo in September, a growth of 8.1% from a year ago.

The quantum of iron ore handled rose the most, followed by petroleum, oils and lubricants, and other liquids.

However, cargo movement in other areas including coal and fertilizers, and containers declined.

Interestingly, this correlates with the growth trajectory seen in the eight core sectors in the recent past, when coal and fertilizers did not do too well.

Meanwhile, ports on the west coast fared well, with Mormugao registering a 61% growth.

However, the two large container-handling ports of Jawaharlal Nehru Port Trust and Chennai port displayed lacklustre growth.

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