Corporate India announced merger and acquisition (M&A) deals worth $2.5 billion in August, up 3-fold year-on-year, driven largely by positive macro- economic factors and government's reforms initiatives, says a report.
The surge in deal value was largely on account of big ticket deals, said the Grant Thornton report. Banking and financial sector led the deal activity contributing over 30 per cent of total deal value driven by the $777 million HDFC Life's merger with Max Life creating India's largest private sector life insurance company with market value of $10 billion.
Among others, telecom, agriculture and forestry, pharma and manufacturing witnessed big ticket deals values over $100 million each. There were over 300 M&A transactions contributing around $22 billion in value from January-August, spread evenly spread across cross-border and domestic M&As.
"What is driving this growth is obviously the optimism in the country coupled with the fact that the macro-economic factors such as inflation, GDP growth, FDI, seem positive," Grant Thornton said.