India’s Q3 M&A activity at $5.7 bn,9-mth deal tally at $17 bn

India’s Q3 M&A activity at $5.7 bn,9-mth deal tally at $17 bn

Outbound bids totalled USD 2.8 billion in the third quarter of 2013.

India Inc’s merger and acquisition activity during the July-September quarter amounted to USD 5.7 billion,taking the deal tally for the first nine months of this year to USD 17 billion,says a Mergermarket report.

According to the global deal tracking firm,deal value declined 28.6 per cent on a quarter-on-quarter basis and on a year-on-year basis it registered a 44 per cent fall.

In the second quarter of this year,corporate India had announced deals worth USD 8 billion,while in the first nine months of 2012,transactions worth USD 30.3 billion were made.

Meanwhile,the M&A deal value of USD 5.7 billion in the third quarter of 2013 also includes Apollo Tyres’ USD 2.3 billion bid for Cooper Tire and Rubber.


Both inbound and outbound deal values plummeted in the third quarter of this year amid economic uncertainty in the global as well as domestic markets.

Inbound M&A deals plummeted 66.3 per cent from USD 7.1 billion in second quarter of 2013 to USD 2.4 billion in the third quarter as “concerns surrounding the outcome of next year’s general elections and the US Federal Reserves’ planned ‘tapering’ kept foreign acquirers at bay,” the report said.

Outbound bids totalled USD 2.8 billion in the third quarter of 2013,a 47.2 per cent fall from second quarter of 2013 (USD 5.3 billion),it added.

Mergermarket further said the two acquisitions worth USD 5.1 billion by state-run ONGC and Oil India off the coast of Mozambique softened the impact of ONGC’s failure to secure a USD 5 billion stake in Kazakhstan’s Kashagan oil field.

Unilever’s USD 3.5 billion acquisition of an additional 14.8 per cent stake in Hindustan Unilever was the largest deal in India so far this year and accounted for 20.9 per cent of aggregate M&A value in the country.

The size of the deal made the consumer sector as the most active sector for M&A in India.

Meanwhile,a sector-wise analysis shows that the pharma,medical and bio-tech sectors were the only sectors to witness a second successive uptick in M&A value.

An aggregate USD 1.8 billion worth of deals occurred in the sector during first to third quarter of 2013,the highest level since the same period of 2010 (USD 4.2 billion,USD 3.7 billion of which was accounted for by Abbott’s landmark acquisition of Piramal Healthcare).

In terms of financial advisors ranking,Citi retained its position at the top with four deals,while Ernst and Young maintained its position as the most active financial advisor by deal count with 18 mandates.