India Inc is likely to witness a continuing surge in merger and acquisition activities after a record number of M&A deals in the first half of 2006 -- aggregating to more than $25 billion.
On the back of upswing in both inbound and outbound cross-boarder mergers, M&A deals worth $25.6 billion were executed in 1H06, outsizing the M&A deals recorded in the entire 2005, global consultancy major PricewaterhouseCoopers said in a report.
Indian companies had recorded M&A deals worth $8 billion in the first half of 2005 and $23.6 billion in 2005.
According to the 10th edition of PWC Asia-Pacific M&A Bulletin, India has overtaken China and South Korea in the Asia Pacific region and lags only behind Japan and Australia in terms of the size of M&A deals.
Total M&A deals worth $64.2 billion were recorded in Japan, followed by Australia at $33.2 billion.
South Korea recorded deals worth $25.2 billion, followed by Chinese companies with deals worth $21 billion.
Hong Kong, Malaysia, Singapore, Thailand, Indonesia and Philippines recorded M&A deals worth $17.1 billion, $9.1 billion, $8.2 billion, $6.6 billion, $6.5 billion and $1.7 billion, respectively.
PWC said M&A activity was expected to remain on an uptrend with cross border deals continuing to maintain their momentum, while significant deal activities were likely in the auto ancillary, retail, real estate, hospitality, oil and gas and financial service segments.
Private equity will play a larger part in the corporate India's M&A activities going ahead, the consultancy firm said.
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