New Delhi: Corporate India’s appetite for growth through inorganic mode has resurfaced with mergers and acquisitions (M&A) deal value in the month of November nearing $5 billion—over three times increase over last year, reports PTI quoting a survey.
According to data compiled by research firm VCCEdge, the M&A deal value in November this year nearly trebled to $4.9 billion from $1.7 billion over the same period last year.
On a month-on-month basis, the November M&A deal volume represents a jump of over five times.
There were M&A deals worth about $16 billion in 2009, while in the year 2008, it stood at a whopping $40 billion.
The uptrend in the deal volume is reflected in the number of transactions as well, with deal count witnessing an upward trend with 59 deals against 41 recorded in the period under consideration last year.
November 2010 has seen the fourth highest monthly M&A deal value over the last twelve months.
Deal valuations witnessed a revival in line with the overall economy, as the average deal amount went up from $74 million in November 2009 to $151 million in November 2010, VCCEdge said in its monthly deal report.
A sector-wise analysis shows that in the period under review utilities and consumer discretionary were the most targeted sectors with deals worth $1.38 billion and $1.27 billion, respectively. They accounted for 53% of total M&A deal value during the month.
Other sectors, which contributed significantly to the deal value were energy ($564 million), financials, ($561 million) and materials ($507 million).
In terms of number of deals, consumer discretionary and information technology turned out to be the most active sectors with 11 and 10 deals respectively, followed by industrials with eight deals and financials and consumer staples with seven deals each.
The largest deal in November 2010 was China Huaneng Corp's acquisition of United States-based IntergenInc from GMR Infrastructure. The GMR Group acquired 50% stake in Intergen for $1.354 million in October 2008.
This was followed by Sahara India's acquisition of 100% stake in Grosvenor House for around $757 million.
The other top deal of the month was Essar Group's acquisition of 60% stake in Zimbabwe Iron & Steel for a price of $500 million.
The top five M&A deals accounted for 68% of total M&A deal value in November 2010, the report added.
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Washington: India could attract as much as $169 billion in clean power project investments in the next decade, reports PTI quoting a report.
According to a report released today by The Pew Charitable Trusts, the annual clean energy investment in India is forecast to grow by as much as 763% over the next 10 years. Within the G-20, India is on track to climb from tenth to the third place in terms of clean power project investments worldwide, it said.
Enhanced clean energy policies would increase private investments in India by 48 percent, tied with the United Kingdom for the highest rate of increase in the G-20, the Pew report said.
It said under all policy scenarios, India, China, Japan, and South Korea will account for 40% of clean power project investments over the next 10 years.
Over the next decade, India is projected to increase its renewable energy generating capacity to 91 gigawatts, five times than what is currently installed, it said.
“The message of this report is clear; countries that want to maximise private investments, spur job creation, invigorate manufacturing and seize export opportunities should strengthen their clean energy policies,” said Phyllis Cuttino, director of the Pew's Climate and Energy program.
On global clean power, the report said the clean energy sector continues to be an immense economic opportunity and could attract as much as $2.3 trillion investment globally.
It said G-20 members have the potential to gain an additional $546 billion in clean power project investments over the next decade.
The report said total renewable energy capacity additions in the G-20 could reach 1,180 gigawatts, almost four times the amount of renewable energy capacity that exists today.