Corporate India’s M&A average: two deals a day

Corporate India’s M&A average: two deals a day

Mumbai, 19 September India Inc continued with its M&A frenzy in August striking an average of two deals per day, a marginal increase over the previous month’s deal numbers but over three-fold jump in value terms.

A total of 62 M&A deals valued at $3.37 billion were announced in August, against 59 deals worth about $0.94 billion in July, according to data compiled by Grant Thornton.

Although nearly equal number of domestic and cross-border deals were recorded last month, in value terms there was a distinct foreign flavour in the overall league table.

The international consultancy and research major in its M&A report for the month, released today, said 30 domestic deals were announced with a total value of $0.66 billion, while the value of 32 cross-border deals was nearly four-times of this figure at $2.71 billion.

The increase in the value was in sharp contrast to the general perception that the US subprime mortgage crisis and the subsequent impact on the global markets would slow down M&A activity.

The total tally of M&A deals announced so far this year stood at 460, with an announced value of $48.4 billion.

The most significant deals of the month were JSW Steels acquisition of three US firms Jindal United Steel, Saw Pipes USA and Jindal Enterprises LLC and Wipro acquiring US-based Infocrossing Inc, Grant Thornton said.

Another outstanding cross-border deal includes Holcim’s increasing of its stake in Ambuja Cements to 36.20 per cent for 220 million dollar.

Out of total 32 cross-border deals, 21 were outbound with a value of 2.33 billion dollar and 11 inbound deals with a value of 0.38 billion dollars.

Besides, the total number of private equity deals announced in August stood at 37 with an announced value of $1.22 billion, against 30 M&As worth $2.79 billion declared in July.

The total tally of PE deals announced so far this year stands at 267, with an value of $10.82 billion.

The most significant PE deals were Fortress Capital, HSBC Principal Investments, Galleon Group, New Silk Route, GLG Partners, Quantum Fund (George Soros) and DA Capital investment of $337.50 million in Infrastructure unit of Reliance Communication.

The other major PE deals were the investment of $150 million in Nagarjuna Construction Company (NCCL) and $110.47 million in Gokaldas Exports by Blackstone Group.