NEW DELHI: The total value of merger and acquisition (M&A) transactions announced in January fell sharply by over 44 per cent year-on-year to USD 1.31 billion, even as the number of deals was higher in the month.
The total number of M&A deals announced in January this year stood at 57, worth USD 1.31 billion, while in the corresponding period last year, there were 49 M&A transactions worth USD 2.35 billion, says a report by Grant Thornton India.
Even as the total value of M&A deals in the first month of the year slumped more than 44 per cent over last year Grant Thornton India, sees the year 2012 as the year of M&As because of current economic downturn, which calls for consolidation and cost cutting.
"January has brought in the new year which we are calling the Year of M&A with a spurt in volume of transactions," Grant Thornton India Partner, India Leadership Team Harish H V said.
Elaborating further, he said, "Volumes have fallen, which essentially means in both these the average volume of transactions has gone down. Essentially the mid-market seems to be more active in both the M&A and the PE segments and big deals are yet to be seen".
The average deal size where deal value was disclosed for January, 2012 stood at USD 93.91 million for M&A and there were no deal larger than USD 0.5 billion.
Inbound deals, wherein foreign companies or their subsidiaries acquired Indian businesses, was the flavour of the month.
The total value of inbound deals stood at USD 811 million through 13 transactions, whereas there were 12 outbound deals (Indian companies acquiring businesses outside India) aggregating to just USD 32 million.
Meanwhile, the total value of domestic deals in January, 2012 was USD 471 million by way of 32 deals as compared to USD 1.27 billion through 27 transactions during the corresponding month in 2011.
Some of the top M&A transactions were TV18 Broadcast's acquisition of the television business of regional broadcaster Eenadu Television for USD 395 million, followed by NYSE listed Watson Pharmaceutical's 94 per cent stake acquisition in Ascent Pharmahealth, a subsidiary of Bangalore-based Strides Arcolab for USD 393 million.
Japan's Nippon Life's 26 per cent stake buy in Reliance Capital Asset Management for USD 290 million, was the other major deal, followed by Japan-based NTT Communications' 74 per cent stake buy in data centre firm Netmagic Solutions for USD 128 million and Dalmia Bharat Enterprise's 50 per cent stake buy in Calcom Cement India for USD 46 million.
"The top five M&A deals accounted for 95 per cent of the total M&A deals values," the report said.
The total number of M&A deals announced in January this year stood at 57, worth USD 1.31 billion, while in the corresponding period last year, there were 49 M&A transactions worth USD 2.35 billion, says a report by Grant Thornton India.
The average deal size also went down and moreover there were not any big ticket deal, the report said.
Even as the total value of M&A deals in the first month of the year slumped more than 44 per cent over last year Grant Thornton India, sees the year 2012 as the year of M&As because of current economic downturn, which calls for consolidation and cost cutting.
"January has brought in the new year which we are calling the Year of M&A with a spurt in volume of transactions," Grant Thornton India Partner, India Leadership Team Harish H V said.
Elaborating further, he said, "Volumes have fallen, which essentially means in both these the average volume of transactions has gone down. Essentially the mid-market seems to be more active in both the M&A and the PE segments and big deals are yet to be seen".
The average deal size where deal value was disclosed for January, 2012 stood at USD 93.91 million for M&A and there were no deal larger than USD 0.5 billion.
Inbound deals, wherein foreign companies or their subsidiaries acquired Indian businesses, was the flavour of the month.
The total value of inbound deals stood at USD 811 million through 13 transactions, whereas there were 12 outbound deals (Indian companies acquiring businesses outside India) aggregating to just USD 32 million.
Meanwhile, the total value of domestic deals in January, 2012 was USD 471 million by way of 32 deals as compared to USD 1.27 billion through 27 transactions during the corresponding month in 2011.
Some of the top M&A transactions were TV18 Broadcast's acquisition of the television business of regional broadcaster Eenadu Television for USD 395 million, followed by NYSE listed Watson Pharmaceutical's 94 per cent stake acquisition in Ascent Pharmahealth, a subsidiary of Bangalore-based Strides Arcolab for USD 393 million.
Japan's Nippon Life's 26 per cent stake buy in Reliance Capital Asset Management for USD 290 million, was the other major deal, followed by Japan-based NTT Communications' 74 per cent stake buy in data centre firm Netmagic Solutions for USD 128 million and Dalmia Bharat Enterprise's 50 per cent stake buy in Calcom Cement India for USD 46 million.
"The top five M&A deals accounted for 95 per cent of the total M&A deals values," the report said.
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