Merger and acquisition (M&A) deals in India double

[abhijitbn]

Even as global consultancy firm, Grant Thornton, revealed in its International Business Report, that 62 per cent of the businesses it surveyed felt that an upturn had already begun or would happen during 2010, merger and acquisition (M&A) activity in India in the month of January 2010 more than doubled over the same period last year, with the announcement of deals worth close to US$ 3 billion.

M&A deals for the month of January 2010, stood at US$ 2.8 billion according to a report by financial research provider, VCEdge. The month saw 29 domestic deals valued at US$ 2,303 million compared to 14 deals valued at US$ 589 million in the same period in the previous year.

According to data from Grant Thornton, outbound M&A deals (deals where Indian companies acquire businesses outside the country) stood at US$ 341 million in January 2010, compared to US$ 40 million for the month of January 2009.

A monthly report by VCEdge showed that private equity investments in the country more than doubled to US$ 386 million in January 2010, up from US$ 191 million in January 2009. The study showed that real estate, infrastructure and telecom accounted for over 45 per cent of the total value of private equity deals in January 2010.

The acquisition of a 16 per cent stake in Hyderabad-based engineering company, Coastal Projects, based in Hyderabad, by equity firms Fidelity, Deutsche Bank, Sequoia Capital and Barings Private Equity stood out as the largest private equity deal in the month.


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