Friday, July 20, 2012

INDIA INC CONSERVING CASH: OUTBOUND M&A DROPS

DEAL MAKING DRYING UP ?
 
The 1st half of 2012 witnessed M&A of US$ 24.6 Billion which is the lowest in the last 3 years and about 19% down compared to H1/2011.
SHOCKING STATISTICS 
  • H1CY'12 M&A activity at 3-year low of $ 24.6 Billion
  • PE activity down 45% in value terms (YoY)
  • Rise in internal mergers and restructuring deals in H1CY'12
  • Internal restructuring deals at $15.2 Billion vs $0.4 Billion in 2011
  • Outbound deals in value terms down 64% at $2.1 Billion in 2011
  • Inbound deals in value terms down 76% at $4.9 Billion in 2011
HIGHLIGHTS

• The total M&A and PE deals in the first half of 2012 were valued at US$28.3billion (544 deals) as compared to US$35.7 billion (508 deals) and US$32.3 billion (510 deals) in the corresponding periods of 2011 and 2010 respectively

• Total value of outbound deals (Indian companies acquiring businesses outside India) in the first half of 2012 was US$2.1 billion (48 deals) as compared to US$5.9 billion (86 deals) and US$17.9 billion (108 deals) during the corresponding period in 2011 and 2010 respectively

• The value of inbound deals (foreign companies or their subsidiaries acquiring Indian businesses) in the first half of 2012 was US$4.9 billion (77 deals) as compared to US$20.5 billion (58 deals) and US$5.4 billion (44 deals) during the corresponding period in 2011 and 2010 respectively

• Value of domestic deals in the first half of 2012 was US$2.4 billion (131 deals) as compared to US$3.4 billion (83 deals) and US$5.6 billion (137 deals) during the corresponding period in 2011 and 2010 respectively

• The total value of mergers & internal restructuring deals in the first half of 2012 was US$15.2 billion (201 deals) as compared to US$0.4 billion (85 deals) and US$0.5 billion (96 deals) during the corresponding period in 2011 and 2010 respectively

• PE deal values amounted to US$ 3.8 billion (218 deals) in the first half of 2012 as compared to US$ 5.5 billion (195 deals) and US$ 3 billion (125 deals) during the corresponding period in 2011 and 2010 respectively

• There were 8 IPOs listed in the first half of 2012 raising a sum of US$ 0.27 billion from the public.

Source: Grant Thornton

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