Indian firms' M&A deals worth USD 2.2 bn in Jan: Thornton

Corporate India announced merger and acquisition deals worth USD 2.2 billion through 48 transactions, registering a significant increase both in terms of value and volume over the corresponding period last year, says a report.
According to assurance, tax and advisory firm Grant Thornton, there were 48 deals worth USD 2.22 billion in January 2015, while in the corresponding period last year there were 33 transactions worth USD 930 million.
However, the previous month of December had witnessed 105 deals worth USD 4 billion.
Inbound deals were the flavour of the month led by the Herman - Symphony deal worth USD 780 million. Moreover, there were three other deals of worth over USD 100 million each.

In sharp contrast, outbound deals declined during the month, but the outlook for this segment looks bullish.
"Outbound activity though has grown in volume but otherwise remains sluggish, however, this is expected to change soon as Indian acquirer's balance sheets are gradually coming out of the red," Grant Thornton India LLP Partner Prashant Mehra said.

"The Ministry of Statistics and Programme Implementation's estimate that India will demonstrate a growth rate of 7.4 per cent will perhaps lead to higher inbound activity and also drive domestic investment," he added.
A sector-wise analysis shows that IT & ITeS attracted the maximum number of 17 deals worth USD 1.56 billion, followed by pharma & healthcare (8 deals worth USD 143 million), media (4, USD 310 million).

"IT&ITES continued to lead M&A activity in India, majorly driven by consolidation trends within the sector. While large deals in the sector were mainly in the IT Consulting and IT Solutions space, acquisition trend continued in the intensely robust E-Commerce segment," the report said.
Others top M&A deals of the month include, Alibaba's 25 per cent stake acquisition in One97 Communications, the parent of mobile commerce firm Paytm for USD 575 million; followed by US-based Silver Eagle Acquisition Corp's USD 300 million investment for a 33.5 per cent stake in India's Videocon d2h, the direct-to-home TV service provider of the Videocon Group.