Inbound merger and acquisitions set to increase: Assocham
April 23rd, 2009 - 9:19 pm ICT by IANSNew Delhi, April 23 (IANS) Strong financials of domestic companies and robust demand in sectors like telecom, pharma and capital goods will kickstart inbound merger and acquisition (M&A) activities in India in the next six to nine months, an industry lobby report said Thursday.
The report by the Associated Chambers of Commerce and Industry (Assocham) said: “Inbound M&As, which had witnessed a steep fall of 85 percent due to the global financial crisis, and consolidation deals are expected to show signs of revival by October-December period 2009.”
Assocham president Sajjan Jindal said in the report: “Indian companies could attract greater number of inbound M&A deals as the equity valuations of certain sectors like telecom, pharma, and capital goods offer lucrative strategic option to bigger foreign companies.”
In January-March 2009, the inbound M&A deals, which had the maximum share in total M&A deal size during October-December 2008, contracted by a whopping 85.28 percent.
The outbound M&A deals shrunk 48.62 percent as the number of deals declined from 28 in October-December 2008 to 16 in January-March 2009, the report said.
The aggregate M&A deals size plunged more than 70 percent in the first quarter of 2009. The number of deals also declined from 58 to 45 during the period.
The Study also found that if it was the telecom sector that attracted the maximum share in the M&A deals in the last quarter of 2008, the pharmaceutical and IT sectors dominated the corporate M&A activities in the first three months of 2009.
- Mergers and acquisitions drop 41.5 percent in 9 months - Oct 07, 2011
- India's mobile phone users spoilt for choice - Jun 05, 2011
- Wipro projects higher IT revenue for fourth quarter - Jan 21, 2011
- Wipro forecasts flat IT growth in fourth quarter - Jan 20, 2012
- RBI launches survey to gauge industry growth outlook - Jan 02, 2011
- Maruti Suzuki quarterly net profit drops 17.7 percent - Jan 29, 2011
- Manufacturing sector growth to slow down further - Nov 20, 2011
- RIL profit falls 13.55 percent, to buy back shares - Jan 20, 2012
- US economy grew faster than thought in fourth quarter - Mar 01, 2012
- Infosys profits from weak rupee, lowers dollar guidance (Lead) - Jan 12, 2012
- India's IT industry bets on growth despite uncertainty - Jan 08, 2012
- Ranchi tops tier-III cities in creating jobs in Q4: Report - Mar 21, 2011
- Hiring to increase in October-December quarter - Sep 17, 2011
- Infosys ups fiscal guidance on robust growth - Jan 12, 2012
- India Inc's business confidence for falls: Survey - Oct 17, 2010
Tags: aggregate, assocham new delhi, capital goods, chambers of commerce, chambers of commerce and industry, first three months, global financial crisis, jindal, last quarter, merger and acquisition, merger and acquisitions, nine months, pharma, revival, robust demand, sajjan, steep fall, study also found that, telecom sector, valuations