The first half of 2008 saw the value of total M&A deals in the country decline by more than 60% compared to the first half of last year, according to the Grant Thornton Deal Tracker. The value of deals fell by $25.5 billion.

During the period, globally too the mergers and acquisitions (M&As) declined to $1.5 trillion, a steep fall of over 35%.

?While this seems like a great fall in deal activity, it is actually not so considering that over 70% of last year?s deals happened in the first two months of the year. It was an extraordinary two months where 3-4 historical deals took place and we cannot expect history to repeat itself too often,? the report explained, hinting that the global slowdown and inflationary pressures plaguing the country should not really be viewed as the primary drivers of such a sluggish trend.

The total number of M&A deals during the first six months of 2008 stood at 265, with a total value of $18.54 billion against 335 deals worth $43.97 billion during the same months in 2007.

The year 2006 saw deals worth $20 billion. India accounts for $18.5 billion out of the $1.5 trillion global M&A figures. Though India saw a decline in M&A deals, most other countries in the Asia-Pacific, such as China, Australia and South East Asian countries, reported an increase in deal value. In India, the number of M&A deals in June stood at 51, for a total value of $5.35 billion.

Topping the charts in value was the acquisition of Ranbaxy by Daiichi Sankyo Co. The Japanese pharmaceutical company Daiichi Sankyo Co acquired a 34.8% stake in Ranbaxy Laboratories Ltd for $2.40 billion followed by GMR Infrastructure Ltd?s acquisition of 50% stake in the Netherlands-based InterGen NV for $1.10 billion. There were 20 domestic deals (both acquirer and target being Indian) with an announced value of $1.01 billion and 31 cross-border deals with an announced value of $4.33 billion. Nineteen of the cross-border deals were outbound deals (Indian companies acquiring business outside India) with a value of $1.90 billion and 12 were inbound deals (international companies or their subsidiaries acquiring Indian business) with an announced value of close to $2.44 billion.