Indian firms acquiring foreign companies up 369% in Jan-Jun: report

NEW DELHI,RUCHIKA SHAH: Outbound merger and acquisition deals by Indian companies, ie Indian companies acquiring overseas firms, saw a huge jump in value terms in the first six months of 2016.

In the January-June period, India’s acquisitions abroad grew 369% to $4.5 billion (nearly Rs 29,937.37 crore) compared to the same period last year, when outbound acquisition deals had slowed down, a Thompson Reuters research about India’s M&A in first half of 2015 stated.

India’s acquisition of overseas companies mainly focused on the Energy & Power sector, with deals worth $2 billion (nearly Rs 13,305.5 crore) announced. Deals in this sector accounted for 48.8% of India’s foreign acquisitions in value terms, the report said.

India’s outbound mergers & acquisitions in Jan-Jun 2016
  • Indian firms acquiring foreign companies up 369%
  • Most deals announced in Energy and Power sector
  • Healthcare, materials, financial sectors popular too
  • In value terms, most deals with Russian companies — 44.1%
  • In number terms, most deals with US — 25

Other deals were announced in the healthcare, materials, and financial industry with 15%, 12.9% and 10.5% market share, respectively.

Most of the deals overseas by Indian companies in value terms, were with Russian companies, accounting for 44.1% market share, it said. Three deals worth $2 billion were announced.

In number terms, most of the deals were announced with US-based companies — 25 transactions worth $598.6 million. Deals with US companies accounted for 13.2% market share.

India’s crossborder deals grew 13.1%, up $9.9 billion (nearly Rs ​65,862.23 crore) compared to the same period last year.

Source: Thompson Reuters research

On the flip-side, however, foreign firms acquiring Indian companies declined 31% in the first six months of the year, in value terms, as the number of deals announced fell 17.3%.

Inbound M&A activity was the lowest since 2012, the report said.

Source: Thompson Reuters research

Inbound transactions focussed on High Technology sector, with deals worth $1.6 billion announced, a 257% increase, the Reuters research report said. Industrials and healthcare followed at 16.3% and 15.5% market share, respectively.

Posted by on July 5, 2016. Filed under Editorial. You can follow any responses to this entry through the RSS 2.0. Both comments and pings are currently closed.