Expect to see significant upsurge in inbound and domestic deal activity in the coming months
Merger and acquisition (M&A) activity in India showed a significant uptrend during May as the month witnessed transactions worth US$ 4.4 billion, taking total deal tally to US$ 16.37 billion in the first five months of this year.The month of May 2014 saw deals worth US$ 4.4 billion via 52 transactions, against 44 deals worth US$ 1.7 billion in the corresponding period last year.
In January-May 2014, corporate India announced 230 M&A transactions worth US$ 16.37 billion, while in the same period last year there were 216 deals worth US$ 8.71 billion.
"We are seeing a deal resurgence in India Inc based on the expected election results. May 2014, which is a hot month has seen the deal market beginning to heat up with US$ 5.2 billion of transactions," said Harish HV, India Partner, Grant Thornton.
The year so far has seen continuous month-on-month uptrend towards the General Elections in May 2014, and the trend has continued post the forming of the new government as well, signalling strong deal outlook for the months to come.
"We expect to see significant upsurge in inbound and domestic deal activity in the coming months," he added.
The overall M&A market witnessed an upsurge in big ticket deals during May with eight deals of over US$ 100 million each, of which 3 deals were valued over US$ 500 million each, the report said.
In terms of deal value, the domestic M&A shows an uptrend while cross-border deals have also increased marginally. The overall M&A market has caught up and is expected to show the same rate of growth in the coming months, the report said.
Major M&A deals of the month include Adani Port's acquisition of Dhamra Port for US$ 932 million, followed by Philippines-based Emperador Inc's acquisition of United Spirits' Whyte & Mackay for US$ 725 million and Reliance- Network18 deal worth US$ 678 million.
Other major deals include Vodacom's (an arm of Vodafone) 68 percent stake acquisition in Neotel (arm of Tata Communications) for US$ 455 million and Essar Oil's 74 percent stake buy in Vadinar Power Company for US$ 356 million, the report added.
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