The value of India-focused merger and acquisition (M&A) deals touched $39 billion in the first nine months of this year, a significant 31 per cent decline vis-à-vis the corresponding period last year, global deal tracking firm Dealogic says. According to Dealogic, "India-targeted volumes (value) totalled $39 billion in the first nine months of 2011, down 31 per cent from $56.1 billion on the same period of 2010."
As per Dealogic, despite ranking among the Top 3 locations for M&A deals in the January-September, 2011, period, India was also the country that witnessed the maximum decline in the combined value of M&A deals.
The combined value of M&A deals in the third quarter was just $4.7 billion, the lowest since the second quarter of 2005, when the deal value stood at $4.1 billion.
Meanwhile, despite a 12 per cent dip in the third quarter, the Asia-Pacific (excluding Japan) region witnessed M&A deals with the highest combined value for a nine-month period on record, at $406.1 billion in 2011, up 13 per cent in comparison to the year-ago period.
India was the third-most targeted nation in the Asia-Pacific region, accounting for M&A deals worth $39 billion, behind China ($134.7 billion) and Australia ($104.9 billion),
Dealogic said.
In the Asia-Pacific region, the nations that witnessed a slump in deal activity in the nine-month period include India (down 31 per cent), Malaysia (15 per cent) and Singapore (4 per cent.
A sector-wise analysis of the Asia-Pacific shows that real estate witnessed the biggest M&A deals in terms of their combined value during the period -- at $48.9 billion -- followed by mining ($48.3 billion) and finance ($42.5 billion), the report said.
"The $12.4 billion bid for Foster's Group by SABMiller was the largest deal in the Asia-Pacific (excluding Japan) in the first nine months of 2011 and is the only over $10 billion food & beverage deal on record in the region," Dealogic added.
Meanwhile, the value of M&A deals worldwide totalled $2.15 trillion during the first nine months of 2011, a 7 per cent rise vis-à-vis the year-ago period.
The value of global M&A deals in the January-September period witnessed an increase despite the fact that their combined worth in the third quarter was just $599 billion, down 23 per cent compared to $783 billion in the third quarter of 2010.
The value of global M&A deals in the third quarter is the lowest since the second quarter of 2010, when it stood at $592.9 billion, Dealogic said.
