M&A deals by Indian firms up 74% in July-September quarter

M&A deals by Indian firms up 74% in July-September quarter

New Delhi: Despite the global financial crisis, the value of mergers and acquisition deals by Indian companies during the July-September quarter was up 73.58% at $9.2 billion, compared with $5.3 billion in the corresponding period in 2007.

In its monthly report, international accounting and business advisory firm Grant Thornton said that the number remained strong with 35 deals worth $3.69 billion being signed in the month of September alone.

Also readDeal tracker September 2008

Of these, 26 were cross-border deals valued collectively at $3.65 billion, with only $0.04 billion worth of domestic deals.

‘The global crisis in liquidity will see a rerating of global valuations and would provide some terrific opportunities for India Inc. This will be backed by the healthy Indian economy, to grab opportunities for acquisitions across the globe. These deals will prove to be of great value to India Inc which is well on its way to becoming India MNC when the global crisis recedes in the next 12-24 months,’ said Harish HV, partner, Transaction Advisory Services.

The largest merger and acquisition activity during the July-September period was by the Japanese firm Daiichi Sankyo, increasing its stake through open offer in Ranbaxy Laboratories to 58% for $1.7 billion.

Emirates Telecommunications Corporation’s $0.9 billion investment to pick up 45% stake in Swan Telecom was the second highest deal in September, the report said.

The total number of deals during the first nine months of the current calendar year stands at 381 against 527 in the corresponding period last year. In all, Indian companies signed 676 merger and acquistion deals during 2007.

An earlier report by global deal tracking firm Zephyr published this month said that Asia Pacific region witnessed the weakest trend in terms of merger and acquisition deal volume as well as value in the third quarter of this year, with the M&A volume dipping to $111.65 million, half of the amount achieved this time last year.