Sluggish M&A activity in October: Grant Thornton

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Published: November 22, 2019 1:03:40 AM

Grant Thornton indicated that driven by the largest bet on India’s clean energy with Total SA’s 37% stake in Adani Gas for $0.9 billion, the energy sector dominated the month’s M&A values with 64% contribution to total M&A deal values.

 In the same period, volumes also fell by 40% to 28 deals.In the same period, volumes also fell by 40% to 28 deals.

Mergers and acquisitions (M&A) activity remained sluggish during the month of October with deal values falling by 45% to $1.534 billion compared to the same period last year, according to the dealtracker report by Grant Thornton. In the same period, volumes also fell by 40% to 28 deals.

The month witnessed one deal valued over $500 million and three deals valued at and over $100 million each, together totalling to $1.4 billion and accounting for 91% of the total M&A deal values.

Grant Thornton indicated that driven by the largest bet on India’s clean energy with Total SA’s 37% stake in Adani Gas for $0.9 billion, the energy sector dominated the month’s M&A values with 64% contribution to total M&A deal values.

“Contrary to the previous month, which was dominated by transactions in the IT and start-up sector, the month was dominated by deals in the pharma sector, pushed by Metropolis Healthcare’s acquisition of four pathology labs to fortify its foothold in Gujarat, followed by deals in the automotive, banking and energy sectors,” the report said.

It further stated that M&A in year-to-date (YTD) 2019 recorded a 69% fall in the deal values as there were 13 marquee billion-dollar deals witnessed in YTD 2018 compared to only four witnessed this year. Manufacturing, energy, start up, pharma, banking, IT, infra, and e-commerce sectors led the deal values in YTD 2019, capturing 89% of the total overall deal values.

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