‘M&A deals number up 75% in Nov; value plunges 48%’

NEW DELHI: A total of 49 merger and acquisition deals worth $1.5 billion were recorded in November, demonstrating an impressive growth rate of 75% in terms of volume, says a report.

However, absence of any big-ticket transaction lead to a 48% drop in the total deal value at $1,496 million in November compared to $2,885 million in November 2018, Grant Thornton's monthly M&A Dealtracker said.

Total M&A deals in volume terms were 49 last month against 28 transactions in the same month of last year, the report said.

"While the question of ‘recession or no recession' continues to be debated, November 2019 reported 49 transactions aggregating to $1.5 billion. M&A deal volumes in both domestic and cross-border categories exceeded the November 2018 levels. However, absence of large ticket transactions dragged down the deal values in November 2019," said Pankaj Chopda, Director, Grant Thornton India LLP.

This included only four deals valued over USD 100 million each, together totalling to USD 1 billion and accounting for 67% of the total M&A deal values, the report added.

According to the report, NCLT approval for Patanjali Ayurved's bid (USD 613 million) for Ruchi Soya was the largest transaction of the month.

Retail, consumer, banking and financial services were the key sectors which attracted maximum M&A traction. Start-ups continued to be the favourites for M&A in deal volume terms, it added.