India Inc. M&A deals in H1 at $38 billion

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New Delhi: The value of mergers and acquisitions that India Inc snapped up in the first half of the year surged over seven times to a staggering $38 billion or  over Rs. 1.8 lakh crore, led by big ticket deals in the telecom and pharma sectors, global consultancy firm Grant Thornton said in the latest issue of Deal tracker.

The significant increase in activity is driven by some of large deals including merger of Reliance Infratel’s tower assets with GTL Infrastructure for $10.86 billion, Bharti Airtel’s $10.7 billion acquisition of Zain’s African assets and Abbott’s acquisition of domestic formulation business of Piramal Healthcare for around $3.72 billion.

The largest contributor has been the telecom sector followed by several others such as pharma/ healthcare, banking and financial services, metals and ores, the study notes. Interestingly, seven deals have been announced already which have is valued billion-dollar-plus, which is a record for first six months of a year.

Another report from VCCEdge, financial research platform of VCCircle.com, states M&A deal value during this April-June period touched $24.8 billion against $2.8 billion in the year-ago period.

“The second quarter of this year saw some big tickets deals, which sent the total M&A deal value soaring. This signaled the return of investor confidence and liquidity to the market,” the VC Edge report notes.

In June, total M&A and PE (including qualified institutional placement) deals were valued at $13.74 billion (67 deals) compared to $1.38 billion (43 deals) and in the same month of 2009, says Grant Thornton report.

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