Big-ticket transactions; Deal values more than double in January-July

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Mumbai | August 18, 2018 3:10 AM

With deals worth nearly $11 billion taking place in July, 2018 is turning out to be a busy year for M&A and private equity players.

Representative Image: Reuters

With deals worth nearly $11 billion taking place in July, 2018 is turning out to be a busy year for M&A and private equity players. Between January and July, nearly $86 billion worth of deals have taken place across 768 M&A and PE transactions. In fact, deal values have more than doubled compared to the same period last year, supported by more big-ticket transactions.

July saw 130 M&As and private equity (PE) deals valued at $10.8 billion, according to data from Grant Thornton. This was a near seven-fold fold increase over July 2017.

“PE investments witnessed a strong positive trend in terms of both values and volumes, with 81 deals garnering $2.1 billion — a 72% increase year-on-year. This was on account of increased appetite for big-ticket funding by companies to fuel their expansion plans,” the report indicated.

The month recorded one deal in the billion-dollar-club and four deals valued over $100 million — together contributing 79% of total investment values.

To fund the largest acquisition of Arysta Lifescience, UPL raised $1.2 billion, marking the largest funding so far in 2018.
The transaction is also backed by a wholly-owned subsidiary of the Abu Dhabi Investment Authority (ADIA) and global alternative asset management firm TPG under which ADIA and TPG Capital Asia will invest a total of $1.2 billion —$600 million each— for an approximately 22% combined shareholding in UPL Corp to facilitate the acquisition.

The month was dominated by investments in start-ups, which accounted for 57% of total investment volumes. Fintech and data analytics and AI were the active segments with six deals each, followed by the retail and discovery platform space with five investments each. “PE investments recorded $11.5 billion through 484 investments, a significant 20% increase in the deal values. There were 31 investments estimated and valued at and above $100 million each,” the report said.

Pankaj Chopda, director, Grant Thornton India, stated the deal activity is expected to be strong for the rest of the year.

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