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India's M&A average: Two deals a day

Press Trust Of India  |  Mumbai 

India Inc continued with its M&A frenzy in August, striking an average of two deals a day, a marginal increase over the previous month's deal numbers, but over three-fold jump in value terms.
A total of 62 M&A deals valued at $3.37 billion were announced in August, against 59 deals worth about $0.94 billion in July, according to data compiled by Grant Thornton.
Although nearly equal number of domestic and cross-border deals were recorded last month, in value terms, there was a distinct foreign flavour in the overall league table.
The international consultancy and research major, in its M&A report for the month released today, said 30 domestic deals were announced with a total value of $0.66 billion dollar, while the value of 32 cross-border deals was nearly four-times of this figure at $2.71 billion.
The increase in the value was in sharp contrast to the general perception that the US subprime mortgage crisis and the subsequent impact on the global markets would slow down M&A activity.
The total tally of M&A deals announced so far this year stood at 460, with an announced value of $48.4 billion. The most significant deals of the month were JSW Steel's acquisition of three US firms Jindal United Steel Corp, Saw Pipes USA and Jindal Enterprises, and Wipro acquiring US-based Infocrossing, Grant Thornton said.
Another outstanding cross-border deal includes Holcim's increasing of its stake in Ambuja Cements to 36.20 per cent for $220 million.
Out of the total 32 cross-border deals, 21 were outbound with a value of $2.33 billion and 11 inbound deals with a value of $0.38 billion.
Besides, the total number of private equity deals announced in August stood at 37 with an announced value of $1.22 billion, against 30 M&As worth $2.79 billion declared in July.
The total tally of PE deals announced so far this year stands at 267, with a value of $10.82 billion.
The most significant PE deals were Fortress Capital, HSBC Principal Investments, Galleon Group, New Silk Route, GLG Partners, Quantum Fund (George Soros) and the DA Capital investment of $337.50 million in the infrastructure unit of Reliance Communication.
The other major PE deals were the investment of $150 million in Nagarjuna Construction Company (NCCL) and $110.47 million in Gokaldas Exports by the Blackstone Group.

First Published: Thu, September 20 2007. 00:00 IST