Half yearly M&As deal values surge 22% to $20.5 bn on Sun-Ranbaxy deal
5 July 2014 4:30 AM IST
The mergers and acquisition (M&A) activity involving domestic companies jumped 21.9 percent at $20.5 billion in the first half of 2014 over the same period last year, says a report. ‘The value of announced M&A deals involving companies reached $20.5 billion during the first half of 2014 despite a 11.2 percent slowdown in the number of deals from 582 to 517,’ a report by Thomson Reuters said on Thursday. The average M&A deal size climbed to $95 million during the reporting period from $62.8 million the same period last year. Domestic M&As stood at $10.1 billion, up 295.9 per cent compared to the first half of 2013.
‘This was driven by Sun Pharmaceutical's pending acquisition of Ranbaxy Labs for $4 billion in a stock swap transaction. The deal pushed the healthcare sector to capture 39.6 percent of the domestic deal making,’ the report said. Completed M&A deals involving domestic companies totaled $14.9 billion, a 20.7 percent rise compared to the first half of 2013, the highest first half period since 2011 which was at $20.7 billion. The technology, media, and telecoms sector captured an aggregate market share of 13.3 percent as combined deal value increased 22.5 per cent to $2.7 billion from the first half of 2013.
Foreign firms acquiring domestic companies reached $5.9 billion this year, a 41.3 percent decline from the first half of 2013 alongside a 4.3 percent drop in the number of announced deals.
The bulk of inbound acquisitions focused on the consumer staples sector in terms of deal value with $2.2 billion worth of transactions, despite a 42 per cent decrease over a year ago. Domestic companies' acquisitions overseas stood at $1.4 billion during the first half of 2014, a 57.8 per cent decrease from the comparative period last year, and the lowest first half period since 2009.
‘This was driven by Sun Pharmaceutical's pending acquisition of Ranbaxy Labs for $4 billion in a stock swap transaction. The deal pushed the healthcare sector to capture 39.6 percent of the domestic deal making,’ the report said. Completed M&A deals involving domestic companies totaled $14.9 billion, a 20.7 percent rise compared to the first half of 2013, the highest first half period since 2011 which was at $20.7 billion. The technology, media, and telecoms sector captured an aggregate market share of 13.3 percent as combined deal value increased 22.5 per cent to $2.7 billion from the first half of 2013.
Foreign firms acquiring domestic companies reached $5.9 billion this year, a 41.3 percent decline from the first half of 2013 alongside a 4.3 percent drop in the number of announced deals.
The bulk of inbound acquisitions focused on the consumer staples sector in terms of deal value with $2.2 billion worth of transactions, despite a 42 per cent decrease over a year ago. Domestic companies' acquisitions overseas stood at $1.4 billion during the first half of 2014, a 57.8 per cent decrease from the comparative period last year, and the lowest first half period since 2009.
Next Story
