M&A deals treble to near US$ 50 billion from 2009 level

New Delhi: India Inc's merger and acquisitions (M&As) have touched nearly US$ 50 billion level from January-July 2010, over three times the total in 2009. M&A deals in 2009 were worth about US$ 16 billion.

The deal valuations are also witnessing a revival in line with the recovery in stock markets and overall economy, besides the value of M&A deals has risen. According to data compiled by research firm VCCEdge, the M&A deal value increased by almost five-times to US$ 5.4 billion in July 2010, up from US$ 1.1 billion in July 2009.

The cumulative M&A deal value so far in 2010 from January to July’10 has touched US$ 49.7 billion, as compared to US$ 16.3 billion in the whole of 2009, VCCEdge said in its monthly deal report. The number of M&A deals so far this year stood at 411. Indian companies announced 64 M&A deals in June 2010 with a total value of nearly US$ 14.1 billion. March has been the biggest month in terms of M&A deals so far this year, which saw 72 deals worth a total of US$ 14.35 billion.

VCCEdge further pointed that the number of domestic deals stood at 21 in July 2010 and the value of domestic deals went up to US$ 2.03 billion in the month, from US$ 282 million in July 2009. The value of inbound deals rose sharply year-over-year to US$ 2.01 billion in July 2010 from US$ 744 million. The average deal size rose to US$ 216 million last month, from US$ 61 million in July 2009.

According to the report by VCCEdge, energy, healthcare and materials each has witnessed deals worth over US$ 1 billion . The biggest deal in the month of July was Reliance Natural Resources Ltd's merger with another Anil Ambani Group firm Reliance Power in an all-stock deal valued at US$ 1.56 billion. The top five deals accounted for 88 per cent of total M&A deal activity in July 2010, VCCEdge added. The deals included Fortis Healthcare's 25.37 per cent stake in Parkway Holdings for US$ 1.12 billion; Japanese major JFE Steel's US$ 1.03 billion purchase of 14.99 per cent stake in JSW Steel; ABB's US$ 965 million buyout offer for ABB India and Piramal Diagnostic Services' US$ 128 million sale to Super Religare Lab (SRL).