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M&A deals pick up, total $16.3 billion in January-May

LiveMint logoLiveMint 15-06-2014 PTI

New Delhi: Merger and acquisition (M&A) activity in India showed a significant upward trend during May as the month witnessed transactions worth $4.4 billion, taking the total deal tally to $16.37 billion in the first five months of this year.

The month of May saw deals worth $4.4 billion via 52 transactions, against 44 deals worth $1.7 billion in the corresponding period last year. In January-May this year, corporate India announced 230 M&A transactions worth $16.37 billion, while in the same period last year, there were 216 deals worth $8.71 billion.

“We are seeing a deal resurgence in India Inc based on the expected election results. May, which is a hot month has seen the deal market beginning to heat up with $5.2 billion of transactions,” Harish H.V., partner, Grant Thornton India, said. The year so far has seen continuous month-on-month upward trend towards the general elections in May 2014, which has continued post the forming of the new government as well, signalling a strong deal outlook for the months to come.

“We expect to see significant upsurge in inbound and domestic deal activity in the coming months,” he added.

The overall M&A market witnessed an upsurge in big ticket deals during May with eight deals of over $100 million each of which three deals were valued over $500 million each, the report said.

In terms of deal value, domestic M&As show an upward trend while cross-border deals have also increased marginally. The overall M&A market is expected to show the same rate of growth in the coming months, a Grant Thornton report said.

Major M&A deals of the month include Adani Ports and Special Economic Zone Ltd’s acquisition of Dhamra port for $932 million, followed by Philippines-based Emperador Inc’s acquisition of United Spirits Ltd’s Whyte & Mackay for $725 million and the Reliance-Network18 deal worth $678 million. Other major deals include Vodacom’s (an arm of Vodafone) 68% stake acquisition in Neotel (arm of Tata Communications Ltd) for $455 million and Essar Oil Ltd’s 74% stake buy in Vadinar Power Co. Ltd for $356 million, the report added.

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