M&A gaining momentum as growth picks up

M&A gaining momentum as growth picks up

Mumbai: With the shadows of financial crisis receding, India-related mergers and acquisitions are likely to gain momentum in the months ahead, top investment bankers said on Tuesday.

“We are likely to see more cross-border mergers and acquisitions in the coming days, thanks to the sufficient liquidity and bullish stock markets," DSP Merrill Lynch’s MD (mergers and acquisitions) Raj Balakrishnan said at a seminar.

Compared to the last year, when mergers and acquisition (M&A) activities significantly slowed down on account of the impact of global financial turmoil, cross-border take overs are poised to gather momentum in the foreseeable future, Balakrishnan said.

According to a recent study, M&A activity in the country more than doubled in the first month of 2010 as deals worth nearly $3 billion (about Rs13,950 crore) were announced amid improved signs of liquidity.

In January this year, there were as many as 29 domestic deals worth $2,303 million compared to 14 transactions worth $589 million in January 2009.

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