India Inc’s July M&A deals down 34% to $1.5 billion
16 Aug 2013 10:31 PM GMT
Corporate India's merger and acquisition deal value touched $1,503 million in July, registering a decline of over 34 per cent compared to the corresponding period last year, says a report.
According to audit and advisory firm Grant Thornton, total M&A deal value announced by India Inc stood at $1,503 million through 40 transactions. There were 44 deals worth $2,291 million in the same period last year.
Moreover, total M&A deal value for the first seven months of this year stood at $15.43 billion, down by 38 per cent from $25.08 billion during the same period in 2012. However, excluding internal mergers and restructuring deals, the year-to-date M&A deal values has increased by 36 per cent to levels seen in the same period last year.
‘The month of July witnessed the Holcim-Ambuja-ACC deal, which was largely an internal group restructuring which included Ambuja Cements paying $585 million to Holcim India as part of the restructuring,’ Grant Thornton India LLP Transaction Advisory Services Partner Raja Lahiri said.
Going forward the M&A deal value is likely to witness significant traction.
‘We have already witnessed some large billion dollar deals like Apollo Tyres Copper Tyres transaction this year and expect M&A action in sectors such as retail, aviation, pharma going forward,’ Lahiri added.
Cross border deals in July 2013 experienced a drop against July 2012 both in value and volume. This was due to two large outbound deals in July 2012 (GMR Group - United Fiber System for $598 million and Sahara Group - Plaza Hotel for $570 million) together amounting to $1,168 million.
According to audit and advisory firm Grant Thornton, total M&A deal value announced by India Inc stood at $1,503 million through 40 transactions. There were 44 deals worth $2,291 million in the same period last year.
Moreover, total M&A deal value for the first seven months of this year stood at $15.43 billion, down by 38 per cent from $25.08 billion during the same period in 2012. However, excluding internal mergers and restructuring deals, the year-to-date M&A deal values has increased by 36 per cent to levels seen in the same period last year.
‘The month of July witnessed the Holcim-Ambuja-ACC deal, which was largely an internal group restructuring which included Ambuja Cements paying $585 million to Holcim India as part of the restructuring,’ Grant Thornton India LLP Transaction Advisory Services Partner Raja Lahiri said.
Going forward the M&A deal value is likely to witness significant traction.
‘We have already witnessed some large billion dollar deals like Apollo Tyres Copper Tyres transaction this year and expect M&A action in sectors such as retail, aviation, pharma going forward,’ Lahiri added.
Cross border deals in July 2013 experienced a drop against July 2012 both in value and volume. This was due to two large outbound deals in July 2012 (GMR Group - United Fiber System for $598 million and Sahara Group - Plaza Hotel for $570 million) together amounting to $1,168 million.
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