Economic Times

Corporate India logs over $48 billion M&A deals in '07

26 September 2007

New Delhi: Reflecting the robustness of the economy, the value of mergers and acquisitions of corporate India has crossed $48 billion for the first eight months of this year with outbound acquisitions surpassing the inbound deals in terms of both value and number.

"Indian companies are constantly making overseas acquisitions showing their higher risk-appetite, ability to acquire and so enhancing foothold in international markets," the latest report from deal tracker Grant Thornton India said.

So far this year, the total M&A deal including both inbound and outbound deals stood at $48,396.80 million through 460 deals while the value of total PE deals amounted to $10,821.67 million through 267 deals.

There were 164 acquisitions made by Indian companies abroad, more than double the number of acquisitions made by international companies in the country (inbound deals at 73).

During the first eight months, acquisitions made by Indian companies abroad valued at $30.79 billion was more than double the number of acquisitions by international firms in India valued at $15.15 billion.

Besides, the value of outbound acquisitions was also double the inbound acquisition value and the largest proportion of outbound acquisitions were made in Europe which contributed close to 53 per cent of all outbound deal value.

The United Kingdom, contributed to about 40 per cent of all outbound deal value and the United States of America followed suit with about 33 per cent of the total amount.
 

Major acquisitions made by Indian companies abroad till August are - the Tata Steel's acquisition of Corus for $12.2 billion, Hindalco's acquisition of Novelis Inc for $6 billion, Suzlon Energy's purchase of 33.85 per cent stake in RE Power for $1.7 billion.

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