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M&A deals struck abroad by the Indian companies have gone down by 64 per cent: ASSOCHAM |
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Written by Administrator
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Thursday, 18 October 2007 |
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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 |
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