The Merger and Acquisition (M&A) activity in India reached $25.65 billion in the first nine months of this year, a slight decline year-on-year because of smaller domestic deal size and fewer restructurings.
According to assurance, tax and advisory firm Grant Thornton, there were 428 M&A transactions worth $25.65 billion during January-September, as against 434 deals worth $26.90 billion in the year-ago period. "M&A remained relatively the same as last year both in terms of value and volume. Most part of the M&A deal value has actually come from inbound investments where $12.6 billion has been infused thereby demonstrating a growth of almost 40 <g data-gr-id="17">per cent</g> in value terms," Grant Thornton India LLP Partner Prashant Mehra said.
There were 230 domestic deals worth $6.91 billion, registering a decline both in terms of number and value of transactions, while there were just 6 mergers and internal restructuring worth $1.32 billion. In January-September 2014, there were 33 such transactions worth $3.31 billion. Meanwhile, <g data-gr-id="18">cross border</g> M&A activity increased by 24 per cent in value terms during the first nine months of this year. In terms of sector spread, M&A activity was driven by energy and natural resources contributing 32 per cent of deal values along with IT & ITeS and pharma and healthcare together contributing another 32 <g data-gr-id="19">per cent</g>.
According to Grant Thornton, going forward, the outlook for domestic and inbound M&A looks bullish. "Indian assets are expected to remain in focus as Inbound and Domestic M&As accelerate on the back of pickup in alternate <g data-gr-id="20">buy out</g> financing by <g data-gr-id="24">PEs,</g> and increased capital market activity both volume and value will clearly be on an uptrend here," Mehra said.