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M&A deals worth $17 bn turn sour this year
Press Trust Of India / New Delhi Apr 07, 2010, 00:01 IST

Mismatch in valuations and clash of interest among stakeholders have resulted in some big-ticket merger and acquisition (M&A) deals in India going sour this year. Deals worth nearly $17 billion got cancelled. These include — the $14.5-billion Reliance-LyondellBasell deal, the $2-billion Reliance-Value Creation transaction, the $12-million PVR-DT Cinemas deal and the $130-million Wockhardt-Abbott Laboratories deal. Last year, two large deals — Bharti-MTN and Sterlite-Asarco — managed to reach critical stages of negotiation, but got cancelled. “Big ticket M&As involve a lot of variables and many things need to come together for the deal to go through. Mismatch in valuations and clash of interests among various stakeholders are some of the reasons for recent failed deals,” said Rohit Madan, director (research), VCCEdge.

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