Deal Street eyes busier new year after Rs 2 tn M&As in 2012
Compared to previous few years, 2012 could still be described as a relatively quiet year, but India Inc is on the prowl again on the international markets and the New Year is likely to witness a significant deal-making upsurge in 2013.
According to tax and advisory major Grant Thornton, India Inc announced 582 M&A deals amounting to USD 41.5 billion till December 15, 2012, down from 644 deals worth USD 44.6 billion in 2011.
The year 2012 began on a bullish note, but deal activities fell significantly in the second and part of the third quarter. However, various reform measures announced by the government in mid-September and easing in liquidity conditions helped boost the deal values as well as volumes.
The outlook for the M&A market looks bright and 2013 is likely to witness a stronger momentum of deals, experts say.
A rebound in India-bound M&As is more likely, as Indian businesses are in a stabilising mode and global buyers continue to chase leaders in each segment, they believe.
"As the overseas investor starts being comfortable about India, inbound M&A would come back and together with domestic economy being better, we could look for a better 2013.
"Moreover as soon as growth momentum comes back, (6 per cent plus)...it will attract foreign investors," PwC
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