M&A deals in auto sector go up by 35 percent in first half of 2018

Eighteen deals worth $500 million were sealed during the period compared with 14 deals worth $371 million in the same period in 2017, a report said.

Written by R Ravichandran

Chennai

July 24, 2018 02:00 IST

The Indian automotive sector saw a whopping 35% growth in M&A deals in the first half of calendar year 2018. (Reuters)

The Indian automotive sector saw a whopping 35% growth in M&A deals in the first half of calendar year 2018. Eighteen deals worth $500 million were sealed during the period compared with 14 deals worth $371 million in the same period in 2017, a report said.

Deal volumes in the Indian auto space have remained steady, including two significant domestic buyouts by financial investors — Kedaara Capital bought a 100% stake in Sunbeam Auto for $100 million and Blackstone bought a 100% in stake Comstar Automotive Technologies for $150 million, the report by ACMA-Grant Thornton titled `M&A in auto: Shifting gears to be future ready’ said.

Some of the other major deals include Suprajit Engineering buying a majority stake in Phoenix Lamps for $33 million, Rockman Industries’ acquisition of Moldex Composites for $15 million, Samvardhana Motherson’s acquisition of MS Global India for an undisclosed sum, Motherson Sumi’s $201-million acquisition of France’s Reydel, Hi-Tech Gears acquisition of Teutech Industries for $44 million, Mahindra & Mahindra’s acquisition of a stake in Zoomcar for $40 million, Varroc Engineering’s acquisition of majority stake in Team Concepts for $15 million.