M&A deals fall 26% to $1.3 billion in Feb, outlook strong: Thornton
According to assurance, tax and advisory firm Grant Thornton, there were 32 merger and acquisition (M&A) deals in February worth USD 1,354 million, a 26 per cent fall in deal value and 11 per cent decline in the transaction volume over February 2016.
Corporate India's merger and acquisition activity in February fell 26 per cent in value terms over the year-ago month to $1.3 billion owing to declining domestic activity, says a survey.
According to assurance, tax and advisory firm Grant Thornton, there were 32 merger and acquisition (M&A) deals in February worth $1,354 million, a 26 per cent fall in deal value and 11 per cent decline in the transaction volume over February 2016.
The report said that the fall in M&A activity was primarily on account of a significant drop in domestic deal activity.
There were just 16 domestic M&A deals in February worth $593 million, while in February 2016 there were 22 such transactions worth $1.28 billion.
"The overall activity in February has been slightly slow perhaps because of the much awaited Union Budget announcement earlier in the month," Grant Thornton India LLP Partner Prashant Mehra said.
Mehra further noted that "with the government's proposal to abolish FIPB along with the global uncertainties, India will perhaps see a further surge in inbound investments which should peak in the last quarter of 2017.
"With domestic growth back on track post-demonetisation, coupled with visibility on critical reforms like GST, domestic M&A in core sectors will continue to grow in value and volume," he added.
Sector-wise, the manufacturing segment led the deals by contributing over 29 per cent of total value. This was primarily driven by Havells Ltd's acquisition of consumer durable business of
Lloyd Electric and Engineering and the Lloyd brand for a consideration of $235 million.
In terms of number of transactions, start-ups and IT and ITeS sector collectively captured 50 per cent of volumes, the report said.
February also witnessed some big ticket deals valued over $100 million in sectors like telecom, energy and pharma, it added.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
Retirement Planning: SIP+SWP combination; Rs 15,000 monthly SIP for 25 years and then Rs 1,52,000 monthly income for 30 years
Top Gold ETF vs Top Large Cap Mutual Fund 10-year Return Calculator: Which has given higher return on Rs 11 lakh investment; see calculations
Retirement Calculator: 40 years of age, Rs 50,000 monthly expenses; what should be retirement corpus and monthly investment
SBI 444-day FD vs Union Bank of India 333-day FD: Know maturity amount on Rs 4 lakh and Rs 8 lakh investments for general and senior citizens
EPF vs SIP vs PPF Calculator: Rs 12,000 monthly investment for 30 years; which can create highest retirement corpus
Home loan EMI vs Mutual Fund SIP Calculator: Rs 70 lakh home loan EMI for 20 years or SIP equal to EMI for 10 years; which can be easier route to buy home; know maths
02:13 PM IST