Mergers and acquisitions deals involving domestic companies in terms of value touched $34.3 billion during the first half of 2017 (HI17), up 59% compared to the same period of 2016, with the number of deals increasing by 9.1%, according to data compiled by Thomson Reuters M&A review. The jump was largely on the back of the telecom sector where in March, Vodafone Group PLC agreed to merge its Vodafone India assets with the mobile business of Idea Cellular for an estimated $11.6 billion, through a joint venture, via a scheme of arrangement. This is the highest first half period M&A in terms of deal value since 2010 ($39.0 billion). The average M&A deal size for transactions with disclosed values climbed up to $95.9 million during the first half of 2017 compared to $73.3 million over the same period last year. Domestic M&A stood at $9.1 billion, down 20.2% in value from over a year ago, but number of announced deals increased 24.1% compared to the first half of 2016. Total cross-border M&A totaled $24.1 billion, up 151.3% in value compared to the first half of 2016. Inbound M&A activity witnessed a triple-digit percentage increase in value to $22.4 billion while outbound M&A activity slowed down 60.7% to $1.7 billion from the comparative period last year.
Completed M&A deals involving Indian companies totaled $32.4 billion, a 120.4% increase in deal value compared to the first half of 2016 ($14.7 billion), while number of completed deals grew 15.7%.
The telecom sector accounted for majority of the acquisitions involving Indian companies with 41.5% market share worth $14.2 billion, more than an eight-times increase in deal value compared to the first half of 2016, making it the highest first half period for the sector since 2007 ($17.9 billion).
Foreign firms acquiring Indian companies reached $22.4 billion in the first half of 2017, a 322.6% increase in deal value from the first half of 2016, led by the $11.6 billion mega deal between Idea Cellular and Vodafone Group.
Indian acquisitions overseas stood at $1.7 billion in the first half of 2017, a 60.7% decline from the same period last year.