The Hindu Business Line : `India witness to heightened M&A activity'

INDIA witnessed 52 per cent rise in the number of deals over 2004 which saw 163 inbound acquisitions valued at $2.83 billion, according to a KPMG survey on mergers and acquisitions (M&A).

The largest inbound deal in 2005 was the acquisition of 67 per cent stake in Ambuja Cement India Ltd by the Swiss Holcim Ltd for $810 million.

In the Asia Pacific region, the growth rate of deal value was as high as 75 per cent, close to the Japanese growth rate of 83 per cent. By number of deals, India was the fifth most targeted nation and the seventh most active acquirer in Asia in 2005.

The global M&A market is currently outstripping last year's improved activity levels by 19 per cent, an analysis by KPMG Corporate Finance said, based on data supplied by Dealogic.

It is estimated that 24,806 M&A deals with a combined value of $2,059 billion have so far been completed around the world in 2005. The rise in deal numbers shows growth is underpinned by improvement in activity levels and not simply skewed by a few larger deals.

Mr Ian Gomes, Country Managing Director, KPMG India, said in a statement: "Last year KPMG Corporate Finance reported a turning point in what had been a declining market. The continued growth in 2005 proves that this was no temporary blip."

India's contribution to the global M&A activity was about one per cent by deal value with 394 deals valued at $10 billion, witnessing a 52 per cent rise over last year.

The Indian utility and energy sector, which ranked number one by deal value, saw 11 deals valued at $2.23 billion, including acquisition of Dabhol Power by Ratnagiri Gas and Power.

The Indian telecom sector, regarded to be one of most deregulated telecom markets in the world, was second with 21 deals valued at $1.8 billion of which four attributed to the top 25 deals in the country, together valued at $1.45 billion, the KPMG study said.

The computer and electronics sector saw 57 deals.

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