Jan-March M&A deals grow 5.2% to $8.2 billion

Mergers and acquisitions (M&As) in India jumped 5.2 per cent to $8.2 billion in the first quarter this year, says a Mergermarket report. According to the global deal tracking firm, amid challenging global macro-economic environment and slowing pace of M&A activity in Asia-Pacific compared to 2015, India still gained a 5.2 per cent, over the same period last year, in terms of deal value. Sector-wise, construction became the most active target sector in India, with the top two transactions in this sector amounted to $3.1 billion. The largest transaction targeting India's cement sector was UltraTech Cement's acquisition of the cement business from Jaiprakash Associates for $2.4 billion. According to Mergermarket, the cement sector will remain hot for M&A transactions led by buy-side interest, ranging from foreign private equity players like KKR and Blackstone, to homegrown corporates. Transportation was another sector attracting increased interest with 11 announcements worth $732 million. According to the report, India's FDI policy was reformed in the second half of last year, allowing 49 per cent above overseas investment within aspects of the railway industry, which could lead to a future boost in the financing of railway development projects.