According to an ASSOCHAM Eco Pulse (AEP) study  on `M&A in 2nd Quarter of 2007-08’, there a sharp decline in the merger and acquisition activities by domestic firms in international market during the second quarter, compared to Q1 of this fiscal

The value of M&A deals struck abroad by the Indian companies have gone down by 64 per cent from $10.3 billion in first quarter to $3.6 billion in the second quarter of current fiscal with Europe recording the biggest drop of 88 percent. Energy, auto, pharma and liquor sectors dominated the mergers and acquisitions space in the first quarter of the current fiscal, the subsequent quarter was marked by the absence of any consolidation activity in these sectors. On the other hand, hospitality, communication, infrastructure, petroleum, healthcare and entertainment industries witnessed considerable corporate expansion through merger route.

MAJOR SECTORS OF M&A ACTIVITY:Fiscal 2007-08

 First Quarter  

Second Quarter 

 Sector

 Amount (in $ million)

 Sector

 Amount (in $ million)

 Steel  4157  IT and ITes  1566
 Energy  3052  Steel  940
 Auto  2438  Hospitality  850
 Liquor  1166  Communication  430
 Iron Ore  981  Infrastructure  325
 Pharma  665  Petroleum  252.5
 Aviation  637  Healthcare  190