"The value of announced M&A deals involving companies reached USD 20.5 billion during the first half of 2014 despite a 11.2 percent slowdown in the number of deals from 582 to 517," a report by Thomson Reuters said today.
The average M&A deal size climbed to USD 95 million during the reporting period from USD 62.8 million the same period last year.
Domestic M&As stood at USD 10.1 billion, up 295.9 per cent compared to the first half of 2013.
"This was driven by Sun Pharmaceutical's pending acquisition of Ranbaxy Labs for USD 4 billion in a stock swap transaction. The deal pushed the healthcare sector to capture 39.6 percent of the domestic deal making," the report said.
Completed M&A deals involving domestic companies totaled USD 14.9 billion, a 20.7 percent rise compared to the first half of 2013, the highest first half period since 2011 which was at USD 20.7 billion.
The technology, media, and telecoms sector captured an aggregate market share of 13.3 percent as combined deal value increased 22.5 per cent to USD 2.7 billion from the first half of 2013.
Foreign firms acquiring domestic companies reached USD 5.9 billion this year, a 41.3 percent decline from the first half of 2013 alongside a 4.3 percent drop in the number of announced deals.
The bulk of inbound acquisitions focused on the consumer staples sector in terms of deal value with USD 2.2 billion worth of transactions, despite a 42 per cent decrease over a year ago.
Domestic companies' acquisitions overseas stood at USD 1.4 billion during the first half of 2014, a 57.8 per cent decrease from the comparative period last year, and the lowest first half period since 2009.
According to estimates from Thomson Reuters, M&A advisory fees from completed transactions in the country totaled USD 77.9 million during the first half of 2014, a 32.8 per cent increase from the same period last year.