India Inc's M&A deals down 21% in May; down 66% so far this year
New Delhi: Merger and acquisition deals in India fell over 21 percent last month to USD 1.3 billion through 42 transactions.
The January-May M&A deal value this year was just USD 7.53 billion, down 66 percent from USD 22.03 billion during the corresponding period in 2012, audit and advisory firm Grant Thornton said today.
During May, there were 42 M&A transactions worth USD 1,304 million, registering a decline of 21.49 percent from the year-ago period, when there were 40 deals worth USD 1,661 million, it said.
"Deal activity continues to be moderated so far this year, especially, cross-border," Grant Thornton India Partner, Transaction Advisory Services Raja Lahiri said.
Cross border deal value (especially inbound deals) has been fairly subdued so far, potentially driven by slowdown in India growth rates, Lahiri added.
Excluding internal mergers and restructuring deals, however, the M&A deal values were similar to levels seen in January-May 2012.
"We continue to remain positive for potential larger cross-border deals in sectors like retail, aviation and broadcasting given the liberalised FDI Policies," Lahiri said.
Piramal Enterprises' acquisition of 10 percent stake in Shriram Transport Finance Ltd for USD 301 million, was the deal of the month, followed by Gaursons India's acquisition of 300 acre land from Jaypee Group for USD 273 million.
Other major M&A deals include Jindal Poly Films' buy out of ExxonMobil Chemical - (BOPP) business for USD 235 million, Suvarnabhoomi Developers' acquisition of DLF's 32 acre of land in Hyderabad for USD 118 million and Ceebros Hotels' acquisition of Viceroy Hotels' Chennai Project Division for USD 89 million.
Top five M&A deals accounted for 78 percent of the total values, Grant Thornton said.