Millennium Post

April M&As dip to $1.66 bn; sharp rise in inbound deals

Corporate India announced merger and acquisition (M&A) transactions worth $1.66 billion in April, with inbound deals being the flavour of the month as foreign firms continued to show interest in Indian businesses.

According to audit and advisory firm Grant Thornton, the total value of M&A deals in the month of April were valued at $1.66 billion through 39 deals as compared to $1.97 billion by way of 60 transactions during the same period of last year.

Though there was a decline in M&A value on a year on year basis, there has been a significant increase in inbound deals and this trend is likely to continue in the coming months.

'Cross border deals and in particular inbound deals are seeing strong resurgence. Unilever's investment announcement preceded the Diageo transaction, which is now in its final legs. These are two significant transactions,' Grant Thornton India LLP Partner, India Leadership Team, Harish HV said.

Out of the total $1.66 billion deals in April, cross border deals were worth $1,121 million, followed by domestic deals ($488 million) and mergers and internal restructuring at $60 million.

Harish further said, ‘We expect a significant uptick in the inbound arena. Similarly, we are seeing a resurgence in outbound transactions and expect to see a significant uptick in this area from both the information technology (IT) and manufacturing sectors.’  Etihad Airways acquiring 24 per cent of Jet Airways for $ 379 million was the deal of the month.
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