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Indian M&A activity declines 34 per cent during 2009

Indian companies were involved in a total of 356 M&A deals in 2009, down 34 per cent from 543 deals the previous year, according to a study by Venture Intelligence. 

However, M&A activity in the second half of 2009, which witnessed 204 deals, was higher than the first half of 2009 which witnessed a total of 152 M&A deals.

In the largest M&A deal by announced value, UltraTech Cement merged Samruddhi Cement with itself to form India’s largest cement company.

This was followed by ONGC Videsh acquiring UK-listed Imperial Energy, which has oil assets in Russia, for USD1.9bn, and Sanofi-Aventis’ acquisition of Hyderabad based Shantha Biotechnics for USD625m.

Over 56 per cent of the deals in 2009 were domestic acquisitions, as against the 43 per cent in 2008. Indian companies cut down on their global acquisitions drastically executing just 85 outbound transactions in 2009 as compared to the 230 in the previous year.

The US was the most preferred destination for Indian companies which acquired 22 American companies in 2009. The US was followed by the UK and Australia with nine deals each.

The acquirers in 28 of the 70 inbound deals during 2009 were US-based companies, followed by German firms with ten deals and French firms with eight deals. 

The IT & ITES and manufacturing industries accounted for most number of acquisitions during 2009 contributing 22 per cent and 18 per cent respectively. Healthcare, energy and BFSI were the next most active industries for M&A activity.

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