During the first half of 2009, Indian companies were involved in a total of 136 M&A deals, down 54% from the same period in 2008. The deal activity was also down 28% compared to the second half of 2008. The average deal value during H1 ?09 (for the 55 deals which had announced transaction values) was $98 million, down from the average deal value of $162 million in H1?08, but higher than the $60 million in H2 ?08, according to a study by Venture Intelligence.
In the largest deal during the period, ONGC Videsh acquired UK-listed Imperial Energy for $1.9 billion. This was followed by Tech Mahindra?s $576 million bid for Satyam Computers and Sesa Goa?s $350 million acquisition of Dempo Mining Corporation. Over 50% of the deals in H1 ?09 were domestic acquisitions, as against only 40% in H1 ?08.
The most preferred destination for Indian acquirers was USA with seven of the 31 outbound targets in H1 ?09 located in that country, followed by the UK (with three deals). The acquirers in eight of the 34 inbound deals were US-based companies, followed by French firms with five deals and German firms with four deals.
The IT & ITES and manufacturing industries accounted for the most number of acquisitions during H1 ?09 with an 18% share each. The activity in the IT & ITES industry, however, fell from 27% during the same period last year. The share of manufacturing deals fell marginally (from 20%).