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India M&A deals in first half of 2014 soar 47%

Mergers and acquisitions (M&As) in India witnessed a significant jump in the first six months this year to $17.1 billion, up over 47 per cent year-on-year, says a report.
‘The value of India targeted M&A activity was valued at $17.1 billion in H1 2014,  a 47.4 per cent increase from H1 2013 when it stood at $11.6 billion,’ global deal tracking firm Mergermarket has said in the latest report.
The April-June quarter of this year saw deals worth $13.4 billion, accounting for 78 per cent of the total first half deal value. In the January-March quarter there were M&A transactions worth $3.7 billion only.

The second quarter was the most active quarter by value since the Q2 of 2012. Moreover, there was also an influx of large cap deals compared to the first quarter of this year. Two of the largest deals come from UK-based bidders (Diageo and Vodafone Group) which resulted in an impressive Q2 for inbound activity valued at $6.3 billion.

Pharma, medical and biotech were the most active sectors during the first half of 2014 as they cornered 27 per cent of market share from deals worth $4.6 billion. Interestingly, though the industrials and chemicals sector led the industry chart in terms of number of deals (27), the deal value totalled to just $0.6 billion, down 61.4 per cent over the corresponding
period a year ago.

The $3.97 billion Sun Pharma-Ranbaxy deal was the top item in the first six months this year, followed by Diageo acquiring 26 per cent stake in United Spirits for $3.14 billion and Vodafone Group's 10.97 per cent stake acquisition in Vodafone India from Piramal Enterprises for $1.47 billion.
Other major deals were Adani Ports and Special Economic Zone's (APSEZ) acquisition of Dhamra Port in Odisha from Tata Steel and L&T Infrastructure Development Projects (L&T IDPL) and Reliance Industries-Network 18 Media deal. The financial advisor league table was topped by Citi which advised five deals worth $8.2 billion, while EY clinched the first position in terms of number of deals (13 transactions totalling $5.2 billion), the report added.
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