Sluggish trend in the global and domestic economies seem to have hit the country's deal street with the total value of merger and acquisition transactions so far this year dipping to one third of the volume reported last year.M&A deals worth $13.66 billion concerning corporate India was announced through May this year, down from $42.24 billion in the first five months of 2007.
The number of deals has also fallen to 215 so far this year, as against 272 transactions in the comparable period of 2007, according to data compiled by global consulting major Grant Thornton's latest issue of Dealtracker.
The data further highlights the fact that, Indian companies have signed deals worth an average of less than 100 million dollars so far in 2008, down from close to $300 million in the previous year.
However, in case of private equity deals the scenario was positive, as around 170 transactions were announced with a grand value of $6.39 billion while during the corresponding period in 2007, around 159 amounting $4.97 billion.
"The total number of M&A deals during the first five months of this year stands at 215, with an announced value of $13.66 billion as against 272 deals amounting to $42.24 billion during the corresponding period in 2007," Thornton added.
In the month of May as many as 49 M&A deals were announced with a total value of $2.92 billion.
Most significant deals were Essar Steel [Get Quote] Holdings Ltd's agreement for acquiring US-based steel producer and distributor Esmark for $1.11 billion followed by Irish company CRHs acquisition of 50 per cent stake in My Home Industries for $468.75 million.
As many as 23 domestic deals, wherein both acquirer and the target companies were Indian, were announced with a total value of $240 million and 26 cross-border deals with an announced value of $2.68 billion.
Out of the 26 cross-border deals, 17 were outbound wherein Indian companies acquired business outside India with a value of $1.58 billion and 9 were inbound in which case international firms acquired Indian business with an announced value of close to $1.10 billion.
"The total number of private equity deals announced during the month of May 2008 stands at 14 deals with an announced value of $1.45 billion as against 32 deals amounting to $0.56 billion in the month of April 2008," Thornton said.
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