The first nine months of calendar 2014 saw a 16.5 per cent rise in the merger and acquisition (M&A) deals at $26.1 billion over that in 2013. This is the highest level since 2011 when the value of M&A deals stood to $34.5 billion.
According to a report prepared by Thomson Reuters, the activity has been led primarily by domestic M&As while the cross border deals saw a decline.
The value of domestic M&As stood at $11.1 billion, up by 207 per cent over the same period last year. Cross border M&As, however, dropped by 40.2 per cent to $10.7 billion over that in the same period last year.
The decline was witnessed both in the inbound and the outbound M&As with the deal value falling by 24.6 per cent and 70.2 per cent respectively.
In terms of the sectors where companies increased their activity, the healthcare sector came on top accounting for over 23 per cent of the market share with total deals amounting to $6.1 billion.
The major transaction in this space was led by Sun Pharmaceuticals acquiring Ranbaxy Laboratories amounting to $4.1 billion in a stock swap transaction.
The energy and power sector came next with a 14.4 per cent market share with deals amounting $3.7 billion.
The technology, media and telecommunications space too witnessed increased activity, accounting for an aggregate market share of 16.7 per cent.
Their combined deal value rose by 35 per cent to $4.3 billion over the same period last year. While the value of inbound deals (foreign companies acquiring Indian companies) stood at $8.9 billion, the acquisition of United Spirits by Relay BV valued at $1.9 billion stood on top.
The decline was more pronounced in outbound deals Indian companies acquiring abroad where the deal value stood at $1.8 billion down by 70.2 per cent over the last year.
Pick-up in the M&A activity benefited the advisory forms the most as their fee incomes rose. The nine-month period saw a 22.4 per cent jump in the total M&A advisory fee earned by the merchant bankers.
Thomson Reuters/Freeman Consulting has estimated that the total fee earned from completed transactions stood at $101.5 million. Bank of America Merrill Lynch stood on top with a 15.7 per cent market share of the total fee earned by the bankers.
Credit-Suisse followed with 12.7 while Citi followed with 10.1 per cent of the fee respectively.