April sees M&A deals zoom 850% YoY in value terms: Grant Thornton report

The increasing role of technology and automation will attract transactions in the IT and ITES and BFSI sectors, the report added

Mergers and Acquisitions (M&A) in the country increased to 40 deals in April 2018 from 29 reported for the corresponding month of last year, a report showed on Thursday.

According to Grant Thornton's M&A deal-tracker report for April 2018, a total of $19.14 billion worth of M&A transactions were spread across 40 deals during the month under review, whereas in April 2017, the country's M&A activity recorded 29 deals worth $2.15 billion.

"Deal activity witnessed a spurt in April. Internal and global group restructuring plans, consolidation and sale and merger of non-core businesses seem to be the underlying themes for the key M&A transactions," said Pankaj Chopda, Director at Grant Thornton India LLP.

"Carve out of non-core businesses, group restructuring to reduce debt levels and pending IBC cases will drive M&A transactions in manufacturing and retail whereas consolidation and competition strategies will stimuli transactions in the e-commerce segment. The increasing role of technology and automation will attract transactions in the IT and ITES and BFSI sectors."