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Mirroring a slowdown in the global markets the merger and acquisition spree of corporate India has been dampened registering a decline of as much as $27 billion so far this year, says a survey.
"The total number of M&A deals during the first seven months of 2008 stands at 315, with an announced value of $18.10 billion as against 394 deals amounting to $44.91 billion during the corresponding period in 2007," research and consultancy firm Grant Thornton said in the latest issue of Dealtracker.
In July, 43 M&A deals were announced with a total announced value of $583.95 million. Out of the 43 deals 17 were domestic, where in both acquirer and target being Indian and 26 were cross-border deals.
Some of the significant deals were WNS Ltd's acquisition of Aviva Global Services for $230 million followed by Quatrro BPO Solutions acquisition of a 60 per cent stake in UK-based Babel Media for $110 million.
The 17 domestic deals had an announced value of $15.03 million and the 26 cross-border deals had an announced value of $568.95 million.
Out of the 26 cross border deals 20 were outbound deals, where Indian companies acquired business outside the country with a value of $498.53 million, and six were inbound deals where international companies or their subsidiaries acquired domestic business with an announced value of $70.40 million.
In the private equity deal segment similar trend was witnessed. The total number of PE deals during the first seven months of 2008 stands at 215, with an announced value of $7.74 billion as against 224 deals amounting to $9.52 billion during the corresponding period in 2007.
In July, 29 PE deals worth $650 million were announced as against 24 deals amounting to $1.15 billion in the month of June 2008.
Some of the significant private equity deals include, US-based WL Ross & Co's $80 million investment in low-frills carrier SpiceJet, followed by Genesis Asset Managers' $77.50 million infusion in Welspun Gujarat Stahl Rohren and the $75 million pump-in by SUN-Apollo Ventures' in the special purpose vehicle of Amrapali Group was the third most significant deal.