India Inc announced merger and acquisition (M&A) transactions worth $1.66 billion in April 2013, with inbound deals being the flavour of the month as foreign firms continued to show interest in Indian businesses.
According to audit and advisory firm Grant Thornton, the total value of M&A deals came through 39 deals as compared to $1.97 billion by way of 60 transactions in April 2012.
Though there was a decline in M&A value on a year-on-year basis, there has been a significant increase in inbound deals and this trend is likely to continue in the coming months, according to Grant Thornton.
Grant Thornton India LLP Partner, India Leadership Team, Harish HV said: “Cross border deals, in particular inbound deals are seeing strong resurgence.”
He added, “Unilever’s investment announcement preceded Diageo transaction, which is now in its final legs. These are two significant transactions.”
Cross-border deals were worth $1,121 million, followed by domestic deals ($488 million) and mergers and internal restructuring at $60 million.
Harish further said: “We expect significant uptick in the inbound arena. Similarly, we are seeing resurgence in outbound transactions and expect to see significant uptick in this area from both, IT and manufacturing sectors.”
Etihad Airways acquiring 24 per cent of Jet Airways for $ 379 million was the deal of the month.
Other major M&A deals in April include Bharti Airtel, acquiring 100 per cent stake in Bangladesh’s Warid Telecom, followed by Aditya Birla Nuvo selling its carbon black business to group firm SKI Carbon Black for Rs 1,451 crore.
The firm’s Partner, Transaction Advisory Services, Raja Lahiri said, “We continue to see Indian corporates focused to divest non-core assets to enhance liquidity, such as DLF stake sale in wind power assets for over $100 million.”