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M&A deals down 6.8% in first 9-months of 2013: Report

By Religare

Mergers & acquisition (M&A) deals involving Indian companies in the first nine months of 2013 in value terms were down 6.8 per cent at USD 23.8 billion, PTI reported.

M&A deals at USD 23.8 billion for January-September this year is the lowest in the last four years. The previous lowest figure for the same period was USD 14.9 billion in 2009.

However, total cross-border M&As grew 36.7 per cent to USD 19.3 billion, driven by a 178.5 per cent spike in outbound M&As, while inbound deals slipped 2.3 per cent to USD 10.8 billion from the first nine months of 2012, according to data from Thomson Reuters M&A report.


There was a drop in inbound M&As too, with the deal size slipping to USD 10.8 billion, the lowest first nine months period since 2009 when it stood at USD 4.4 billion, the report aid, adding that the outbound agreements jumped 178.5 per cent to USD 8.5 billion.

During the third quarter of CY2013, overall M&As involving domestic companies totalled USD 5.4 billion, a whopping 60.1 per cent sequential decline from the second quarter of 2013 and a 29.5 per cent drop from the year ago period, it said.

During the period under review, the average deal size climbed to USD 72.8 million, compared to USD 68.8 million during the first nine months of 2012. Domestic M&As stood at USD 3.6 billion, down 65.4 per cent compared to the same period last year, the lowest first nine month-level since 2004 (USD 1.5 billion).

The bulk of domestic activity focused on the materials sector at USD 1.5 billion, down 29.4 per cent from the same period last year, but captured 41.2 per cent of domestic M&As.

Completed M&As involving domestic companies totalled USD 21.8 billion, a 58.1 per cent growth from the first nine months of last year.

Energy and power sector deals lead with 25.5 per cent market share worth USD 6.1 billion, a 246.7 per cent increase from the same period last year.

The second slot was cornered by industrials (18 per cent), followed by consumer staples (16.1 per cent), together capturing a market share of 34.1 per cent, registering and increase of 203.8 per cent and 221.3 per cent, respectively.


Dion Global Solutions Ltd.

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