India's year-to-date deal value reaches record high

India's year-to-date deal value reaches record high

According to a report by merger market, a M&A intelligence service provider, M&A activities in the country generally saw significant improvement in the past three quarters as 183 deals worth USD 44.2 billion were announced, up 24.5 per cent in volume terms and 312.9 per cent in deal value from a ago.

"We expect to see a lot more strategic activity in India as private equity players shy away from the sky-high valuations being demanded by shareholders," merger market Asia Pacific Deputy Editor Anjali Naik said.

Going forward, Naik said the consumer, travel and hospitality sector may see a large number of M&A deals and India may trade into newer territories in the coming months.
"We are also seeing India forge acquisitions in new countries-– such as Sri Lanka, given the proximity and cultural ties, and Australia – given their high quality resources and tech-savvy market," Naik added.

The Indian Government's auction of 3G and broadband wireless access (BWA) spectrums worth USD 11.009 billion and USD 5.473 billion, respectively contributed significantly to the deal tally.

A sector wise analysis shows that the technology, media and telecoms sector accounted for 47.3 per cent of the total M&A deal value till date, while, the energy, mining and utilities sector, was the second most-active sector, as it contributed 26.3 per cent in deal value for the first three quarters of 2010, the report said.

Rothschild topped the financial advisors league table In the first three quarters of 2010, as it advised on M&A transactions with a total value of USD 27.4 billion, while, Ernst & Young topped the deal count financial advisers table by advising on 18 deals, the report said.

Some of the announced deals so far this year include the USD 10.7 million Bharti-Zain deal, Vedanta's 60 per cent stake buy in Cairn India worth USD 9.1 million, the USD 3.7 million Abbott Laboratories-Piramal Healthcare deal, the report added.