New Delhi: India Inc's shopping spree suffered a setback in October in which merger and acquisition (M&A) deals worth only $650 million were announced - the lowest monthly M&A transaction value since October 2009, reports PTI.
According to data compiled by research firm VCCEdge, the M&A value in October stood at $650 million, a sharp decline from the $2 billion witnessed in the previous month.
However on a year-on-year basis, the deal volume as well as value saw an increase.
The highest number M&A deals were recorded in March this year with 72 transactions worth $14.35 billion. Previously, the maximum number of deals was in February, 2007 when it touched $19.29 billion in 39 deals, the report said.
The average deal amount in October this year was $36 million, a 9% increase from last month. In terms of deal size, transactions under $50 million accounted for 81% of the total volume, the report said.
The most targeted sector in October was the consumer discretionary sector, which attracted 18 deals valued at $158 million. However in terms of deal value, financials emerged at the top, recording acquisitions worth $369 million through six deals.
The largest deal was Fortis Healthcare acquisition of healthcare business of China-based Quality Healthcare Asia Ltd for $200 million.
The healthcare sector saw six deals worth $265 million.
ABG Shipyard's acquisition of 60.2% stake in Western India Shipyard for around $64 million was the second biggest deal in the month, the report added.
The other top deal of the month was Suzlon Energy's acquisition of 41.25 million equity shares representing 17.1% stake in Pune-based SE Forge Ltd from IDFC Private Equity for a price of $42 million.
The top five M&A deals accounted for 42% of total M&A deal value in October 2010, VCCEdge said.
I happened to pick up 'MoneyLife' from the shelf of Crossword and felt extremely happy to...
What if the government of India were to privatise income tax collection? It is not as bizarre as...