Merger and acquisitions by domestic companies saw a major spike in the second quarter of the year, taking the first half tally to $10.9 billion through 130 transactions, according to a report by Mergermarket. Deal activity in the second quarter of this year more than doubled to $7.7 billion over the first quarter of 2013 when deals worth $3.2 billion were announced. Moreover there was an uptick in both inbound and outbound deal activity with inbound M&A value jumped 190.4 per cent from Q1 and outbound deals surged 732.6 per cent above the Q1 2013 tally. “Inbound M&A value jumped 190.4 per cent from Q1 2013 ($2.3 billion) to $6.8 billion in Q2 2013," the Mergermarket said adding that outbound transactions surged 732.6 percent above the Q1 2013 tally.
Outbound deals were the flavour of the April-June quarter as domestic firms snapped up $ 5.2 billion-worth of assets overseas. Some of the key outbound deals of the quarter include ONGC and Oil India's acquisition of a 10 per cent stake in the giant Rovuma gas field in Mozambique for $2.5 billion, which is the country's largest outbound foray so far this year. The April-June period also featured Apollo Tyres' bid for Cooper Tire & Rubber, the largest acquisition of a US target ever attempted by an Indian bidder.
However, despite the strong recovery this quarter, H1 2013 M&A totalled $10.9 billion (130 deals) – the lowest opening half year since H1 2009 ($7.8 billion, 98 deals), Mergermarket said. The Netherlands-based Unilever's acquisition of 22.5 per cent stake in its Indian subsidiary for $5.4 billion accounted for 52.1 per cent of aggregate inbound H1 2013 value and consequently, the consumer sector had the highest total deal value, the report added.
