India Inc announces deals worth $5 bn in first 2 months: Thornton

Says inbound deals continue to witness upward trend

Corporate India announced mergers and acquisitions worth USD 2.7 billion through 40 deals in February taking the total tally in the first two months this year to nearly USD 5 billion, says a report.

According to assurance, tax and advisory firm Grant Thornton, there were 40 deals worth USD 2.7 billion in February this year, while in the same month last year there were 50 transactions worth USD 1.73 billion.

January saw 48 deals worth USD 2.22 billion with high number of activities coming in e-commerce segment. Pharma sector topped the chart in value terms.

"The two months in 2015 have already witnessed a deal value of almost USD 5 billion across around 90 deals which is 85 per cent higher in value from the same period in 2014 and 26 per cent higher in 2013," Grant Thornton India LLP Partner Prashant Mehra said in the report.

February saw 125 per cent increase in domestic deal value. Even though the volume of cross border transaction decreased by 65 per cent, the value of these transactions increased by 36 per cent.

Mehra said: "On the cross-border front, though volumes decreased by 65 per cent in February, values rose by 36 per cent as compared to February 2014, which is perhaps a sign of maturing of the market as average deal value is increasing."

Inbound deals continue to witness upward trend, and the flavour of the month in February was the Mylan Inc-Famy care deal worth USD 750 million. There were 3 other deals of over USD 100 million each.

Sector-wise, the IT & ITeS drove M&A deal activity in terms of volumes with E-commerce continuing to play a key role within the sector. The E-commerce sector attracted 10 transactions worth USD 240 million.

Meanwhile, in terms of value of deals, pharma sector topped the charts as it witnessed deals worth USD 772 million driven by the fourth-biggest inbound M&A ever in the country, with the acquisition of the Famy Care businesses by Mylan.

Besides the Mylan- Famy Care deal, other key transactions of the month include, Infosys' acquisition of US-based automation technology provider Panaya for an enterprise value of USD 200 million.

Singapore-based Sembcorp Industries' acquisition of a 60 per cent stake in Green Infra, a renewable energy company in India with a wind and solar portfolio was the other major deal during February.