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Indian M&A activity declines 54 per cent during first half

Indian companies were involved in a total of 136 M&A deals during the first half of 2009, down 54 per cent from the same period in 2008, according to a study by Venture Intelligence

Indian companies were involved in a total of 136 M&A deals during the first half of 2009, down 54 per cent from the same period in 2008, according to a study by Venture Intelligence. 

Deal activity was also down 28 per cent compared to the second half of 2008.

The average deal value during H1 09 (for the 55 deals which had announced transaction values) was USD98m, down from the average deal value of USD162m in H1 08, but higher the USD60m in H2 08.

In the largest deal during the period, ONGC Videsh acquired UK-listed Imperial Energy for USD1.9bn. This was followed by Tech Mahindra’s USD576m bid for Satyam Computers and Sesa Goa’s USD350m acquisition of Dempo Mining.

Over 50 per cent of the deals in H1 09 were domestic acquisitions, as against only 40 per cent in H1 08, the study found.

The most preferred destination for Indian acquirers was the US with seven of the 31 outbound targets in H1 09 located in that country, followed by the UK with three deals. The acquirers in eight of the 34 inbound deals were US-based companies, followed by French firms with five deals and German firms with four deals. 

The IT and ITES and manufacturing industries accounted for the most number of acquisitions during H1 09 with an 18 per cent share each. Activity in the IT and ITES industry fell from 27 per cent during the same period last year. The share of manufacturing deals fell marginally from 20 per cent.

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