After three months of sluggish activity the country's deal street has picked up pace with corporate India announcing merger and acquisition (M&A) transactions worth USD 2.7 billion in November this year.
According to global consultancy firm Grant Thornton, in the month of November India Inc's M&A deal value stood at USD 2,765 million, up from USD 530 million in October and USD 601 million in September and USD 390 million in August this year.
"After three months of relatively lower activity, M&A values have shown significant increase in November 2010 with USD 2.7 billion worth of deals," Grant Thornton - Partner, Specialist Advisory Services C G Srividya said.
Inbound deals, wherein, foreign companies or their subsidiaries acquired Indian businesses were the flavour of the month, as this segment cornered deals worth USD 1.51 billion, while, the total value of outbound deals – Indian firms acquiring businesses abroad -- was at USD 0.80 billion.
The total value of domestic deals in November 2010 was USD 0.46 billion as against USD 0.21 billion in 2009.
The largest deal in November 2010 was China Huaneng Corp's acquisition of US-based IntergenInc from GMR Infrastructure. GMR Group acquired 50 per cent stake in Intergen for USD 1.232 million in October 2008.
Referring the Axis Bank's acquisition of Enam Securities for nearly USD 440 million as a "unique deal in the investment banking space," Srividya said it (the deal) could set a trend going forward.
The top five M&A deals accounted for 83 per cent of the total M&A deal values, the report added.
A sector wise analysis shows that power and energy sector cornered 45 per cent of the total M&A deal pie, followed by banking and financial services which accounted for 18 per cent and mining and textiles (15 per cent), Grant Thornton added.