India Inc's merger and acquisition activity seems to be fading as the month of August was the leanest since September 2009 with total deal volume of $4.2 billion.
According to research firm VCCEdge, August saw the lowest deals in the last 11 months which could be much better if "Vedanta's proposed $9.6-billion deal for Cairn India would have gone through."
"March and June 2010 had seen some large deals which resulted in deal value greater than $14 billion during these two months. August was much lower in comparison," it added.
In July this year, the total value of M&A deals was about $5.4 billion.
However, merger and acquisition activity in August this year zoomed over seven fold compared to the same month last year when only deals worth $629 million took place, the report noted. For the year so far, total merger and acquisition deal value stands at $54 billion.
Power equipment manufacturer Bharat Heavy Electricals Ltd (BHEL) said it will sign a joint venture agreement with the government of Kerala to acquire the Kasargod unit of Kerala Electricals Ltd. No financial details of the deal were provided.
Kerala Electricals, a public sector undertaking, is fully owned by the government of Kerala. It manufactures alternators for railway applications and other industrial applications.
On Wednesday, BHEL shares ended flat at Rs2,435 on the Bombay Stock Exchange, while the benchmark Sensex closed 0.1% up at 18,666 points.
Piramal Healthcare Ltd said it has signed a definitive agreement with Super Religare Laboratories Ltd (SRLL) to acquire Piramal Diagnostic Services Ltd (PDSL), a subsidiary of Piramal. This deal is valued at Rs600 crore.
Piramal will receive Rs300 crore on closing and the balance amount over three years.
PDSL provides pathology and radiology diagnostic services through a network of 107 laboratories with financial year 2009-10 revenues of over Rs200 crore. As a result, SRLL will have the largest network of pathology and radiology centres and will become the undisputed leader in the diagnostic services industry in the country. Piramal will continue to be involved in the business, including by way of representation on the board of directors and the executive committee of SRLL.
The combined entity will have nearly 170 laboratories and 1,500 collection centres and will serve more than 12 million customers annually.
On Wednesday, Piramal Healthcare shares gained 2.2% to Rs521 on the Bombay Stock Exchange, while the benchmark Sensex closed 0.1% up at 18,666 points.