M&A deals in Jan-Nov drop 27% to $82 b
Posting a declining trend from the previous year-ago period, India’s total M&A deals recorded $2.3 billion in value terms from 27 deals in November this year, impacted mainly by a drop in big ticket transactions.
This is a 27 per cent decline in value and a 31 per cent drop in volume from the comparable year ago month.
In November 2017, India recorded M&A deals worth $3.2 billion in value from across 39 deals, according to Grant Thornton’s M&A Dealtracker.
This diminishing trend can be attributed to an increased uncertainty on account of volatile crude oil prices, delays with respect to closure of IBC cases (Insolvency and Bankruptcy Code, 2016) and depreciating rupee, the tax and advisory firm said.
For the January-November period, M&A deal values doubled to $82 billion, up 12 per cent on account of revived domestic and crossborder deal activity.
“Deals aggregating to $1.2 billion were reported under domestic and cross-border transactions each in November 2018. Although, the number of cross-border deals reported in November 2017 and 2018 remained constant at 13, the deal ticket size in November 2018 pulled down the overall deal values. Transactions of financially stressed assets, diversification of non-core business and focus of specific market in identified geographies were the key drivers for transactions during the month,” Pankaj Chopda, Director at Grant Thornton India, said.
“The writing is on the wall that 2018 will be recordbreaking both in terms of deal value and deal volumes, but the closing may not be so grand,” he added.