M&A activity: Deals fell 60% in April to $5.19 bn despite more transactions

The overall deal activity by value declined by a sharp 60 per cent to $5.192 billion in April as compared to the preceding March's $12.934 billion, a report said on Monday.

This was despite a 24 per cent increase in the number of deals at 176 during the month, the report by a consultancy firm said.

The highest decline by value was in the merger and acquisitions transactions, which came down 75 per cent to $2.526 billion when compared with $10.212 billion in March, while the private equity transactions by value were marginally down at $2.666 billion, the report by Grant Thornton Bharat said.

Within the broader M&A, the decline was sharpest in outbound deals that plummeted to $24 million as against $9.072 billion a month ago, it said.
 

The Adani group's 8 per cent stake increase in Ambuja Cement and ACC for a cumulative $1.8 billion in two transactions was the highest M&A activity of the month, it said.

"The deal outlook for 2024 continues to remain positive as India stands at the cusp of a new era of growth and investment supported by a growing consumer market, a flourishing tech start-up ecosystem, and supportive government policies," its partner Shanthi Vijetha said.

Factors influencing domestic markets in the near term could include the outcome of Lok Sabha elections, global and domestic trend in interest rates driven by inflation and supply chain dynamics, he added.