M&A deals in H1 dip on economic woes

 The total value of merger and acquisition (M&A) transactions in the first half of this year fell by over 19 per cent year-on-year to $24.6 billion, mainly due to the overall global economic situation and global player’s concern on the Indian regulatory framework.


The first six months of 2012 witnessed M&A of $24.6 billion — the lowest in the last three years — and about 19 per cent down compared to H1 2011, even as the number of deals was higher during the period under consideration, Grant Thornton India said.


A significant amount of internal mergers and restructuring happened during the first half of this year. Of the nearly $25 billion deals, close to $15 billion came from internal merger and restructuring. Key M&A deals in the first half of this year include the HSBC-RBS deal, Piramal’s Group acquisition of Decision Resources Group, US and Mitsui Sumitomo Insurance’s investment into Max New York Life Insurance.

Inbound deals were the flavour of the season. Inbound transaction worth $4.9 billion (via 77 deals) were announced in the first half of 2012, while outbound deals (Indian companies acquiring businesses outside India) in the first half of 2012 stood at $2.1 billion.

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