M&A deals value at $16.3 bn in January-May this year – Grant Thornton

Merger and acquisition (M&A) activity in India showed a significant uptrend during May as the month witnessed transactions worth USD 4.4 billion, taking total deal tally to USD 16.37 billion in the first five months of this year.

The month of May saw deals worth USD 4.4 billion via 52 transactions, against 44 deals worth USD 1.7 billion in the corresponding period last year.

In January-May this year, corporate India announced 230 M&A transactions worth USD 16.37 billion, while in the same period last year there were 216 deals worth USD 8.71 billion.

“We are seeing a deal resurgence in India Inc based on the expected election results. May, which is a hot month has seen the deal market beginning to heat up with USD 5.2 billion of transactions,” Grant Thornton India Partner Harish HV said.

The year so far has seen continuous month-on-month uptrend towards the General Elections in May 2014, and the trend has continued post the forming of the new government as well, signalling strong deal outlook for the months to come.

“We expect to see significant upsurge in inbound and domestic deal activity in the coming months,” he added.

The overall M&A market witnessed an upsurge in big ticket deals during May with eight deals of over USD 100 million each of which 3 deals were valued over USD 500 million each, the report said.

In terms of deal value, the domestic M&A shows an uptrend while crossborder deals have also increased marginally. The overall M&A market has caught up and is expected to show the same rate of growth in the coming months, the report said.

Major M&A deals of the month include Adani Port’s acquisition of Dhamra Port for USD 932 million, followed by Philippines-based Emperador Inc’s acquisition of United Spirits’ Whyte & Mackay for USD 725 million and Reliance- Network18 deal worth USD 678 million.

Other major deals include Vodacom’s (an arm of Vodafone) 68 percent stake acquisition in Neotel (arm of Tata Communications) for USD 455 million and Essar Oil’s 74 percent stake buy in Vadinar Power Company for USD 356 million, the report added.