New Delhi: India Inc sealed mergers and acquisitions (M&A) deals worth US$ 55 billion so far in 2010, including a record number of billion-dollar transactions.
The total deal value surpassed the previous record set in 2007 and big-ticket deals made a comeback as corporate India regained its deal-making appetite with more than US$ 9 billion deals, the highest-ever in a single year.
"Indian companies are ready to pay what they perceive to be the right valuation. They are not just hunting for bargain buys, but they would take advantage of the economic slowdown and the fact that many loss-making companies in developed markets are looking to sell out," according to Freny Patel, Associate Editor, DealReporter (part of Mergermarket Group), Asia-Pacific.
The M&A deals showcased the high global ambitions set up by India Inc who acquired foreign assets worth US$ 27.25 billion with a view to expand their market share.
"There have been acquisitions in South America, Europe, Australia, Singapore, etc, for some time now. More recently, there is a lot of interest in developing economies in Africa, Indonesia, Malaysia, etc," according to C G Srividya, Specialist Advisory Services Partner, Grant Thornton India .
So far in 2010 (till December 15), the total deal announced value amounted to US$ 54.6 billion, significantly more than the previous high of US$ 42 billion achieved in 2007, according to research firm VCCEdge.
No comments:
Post a Comment