23 June 2010 | By: Mohamed Hairul Borhan

The number of corporate merger & acquisitions (M&A) and private equity (PE) transactions in India more than doubled in the first five months of the current calendar year, recording a marked revival in deal activity in the country.

As many as 439 M&A and PE transactions have been announced between January and May this year compared to just 179 in the same period last year, said Grant Thornton.

The number of deals sealed so far this year has also overtaken that of the corresponding period in 2008 when 383 deals were announced. The sharp rebound in the corporate deal-making over the past few months is linked to the recovery in the Indian economy, said a Delhi-based corporate lawyer specialising in such transactions.

The value of deals announced since January has topped the US$30 billion (S$41.6 billion*) mark, more than a three-fold jump from US$8.1 billion recorded in January-May 2009.

The month of May alone witnessed 59 deals worth US$8.33 billion against 35 deals valued at US$1.85 billion during the same period last year. Out of this, 44 were M&As and the remaining 15 were PE transactions.

Some of the key sectors that attracted have significant investor interest in the M&A space were pharmaceutical & healthcare, banking & finance, mining, FMCG and IT/ITeS, while PE firms struck deals in cement, education and real estate sectors, among others.

The biggest PE transaction last month was the KKR- Dalmia Cement deal which was worth US$159.57 million. The biggest M&A deal was Abbott’s acquisition of Piramal Healthcare’s formulations business for US$3.7 billion.

*Exchange rate correct as of 23 June 2010

Courtesy of IBEF