M&A deal activity jumps five times to $ 11.5 billion in Q3 says report

Last Updated: Tue, Oct 16, 2018 16:08 hrs

Deal activity in corporate India touched a high-point in the quarter ending September (Calendar Year).

Data provided by Grant Thornton says that for the three months to September, Corporate India registered 130 mergers and acquisitions, cumulatively valued at $11.5 billion.

This, is nearly five times larger than the mergers and acquisitions recorded in the corresponding period of 2017. Last year, M&A activity was reported at $2.14 billion via 119 transactions.

With this, the total deals recorded in the nine months of the calendar year stands at $ 76.03 billion.

In fact, mergers and acquisitions in Jan-Sept 2018 have doubled from the previous year.

The year saw headline-grabbing mergers such as Walmart's acquisition of Flipkart, the merger of Bharti Infratel and Indus Towers, ONGC's acquisition of HPCL, UPL's acquisition of Arysta LifeScience and other large deals.

Prashant Mehra a partner at Grant Thornton India LLP said, "Strong earnings, promising demographics and big ticket deals drove the M&A activity, clocking deals worth $ 76 billion from over 350 transactions."

From a sectoral perspective, agriculture sector led the deal activity for the third quarter, accounting for nearly 37% of the total deal value. This was majorly driven through UPL Ltd's acquisition of Arysta LifeScience Inc for $ 4.2 billion.

Besides, the pharma sector too remained buzzing between July-September quarter, recording as many as eight deals worth $ 1.3 billion, with Aurobindo Pharma's acquisition of the dermatology business and generic US oral solids portfolio of Sandoz Inc.

Start-up sector contributed a 22% share owing to revival from domestic investors in Fintech segment.

Mehra said that insolvency regime remains a catalyst in increasing restructuring activities but remained cautious of the election year approaching.

He said that in the run-up to the elections, investors and corporates could be expected to adopt a more cautious approach over the course of the coming months.

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