India-targetted M&A deals dip in 2011

India-targeted volume decreased to $44.4 bn in 2011,down 32% from 2010 ($65.2 bn): Dealogic.

Written by Agencies | New Delhi | Published: January 4, 2012 4:55:42 pm

The merger and acquisition deals targeting India dipped sharply in 2011,but the overall volumes for the Asia-Pacific region remained resilient and at par with the previous year,as per a study.

The total Asia-Pacific (excluding Japan) M&A volume was $543.1 billion in 2011,down slightly from 2010 level of $543.8 billion,despite a decline in the deal activities in second half of the year,global deal-tracking firm Dealogic said.

On the other hand,the global M&A volume reached $2.81 trillion in 2011,an increase of 3 per cent from $2.74 trillion in 2010,global deal-tracking firm Dealogic has said. Within Asia-Pacific region,China was the most targeted nation in the region with $188.2 billion worth of deals,followed by Australia with $136.4 billion and South Korea with $53.6 billion.

India was way behind with just $44.4 billion worth of transactions.

“India-targeted volume decreased to $44.4 billion in 2011,down 32 per cent from 2010 ($65.2 billion),” Dealogic said.

In the fourth quarter of 2011,India’s M&A volume dipped 68 per cent from last year,as M&A worth $2.9 billion were announced,as against $9.2 billion in 2010. The fourth quarter of 2011 was also the lowest quarter volume since the fourth quarter of 2004 when it stood at $2.4 billion.

India inbound M&A volume was $30.1 billion and accounted for 71 per cent of total deals in the country,up from a 26 per cent share in 2010 ($16.6 billion). A sector-wise analysis shows that oil and gas was the most targeted sector in 2011,reaching a record high of $9.9 billion. Telecom was second ($6.5 billion) and finance was third ($5.4 billion),Dealogic said.

The flavour of the season in the Asia Pacific region was inbound deals as the Asia Pacific (excluding Japan) inbound volume reached a record high of $121 billion,up 16 per cent from $104 billion in 2010. Asia Pacific (excluding Japan) outbound volume totaled $118 billion,down 4 per cent from 2010 when it stood at $123 billion.

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