Global M&As cross 11,000 deals valued at with $1 trillion in Q1 2008
21 Apr 2008
New Delhi: Despite the global financial markets crisis, 2008 has witnessed a bull run in global mergers and acquisitions; the value of M&A deals in the year so far has already crossed $1 trillion, reports advisory firm Dealogic.
Dealogic says though the global M&A volumes in 2008 has just crossed $1 trillion against $1.4 trillion in the corresponding period last year, the number of announced deals, 11,286 this year, is the highest on a year-on-year basis.
However, the value of Indian M&A deals at $10 billion declined to less than one per cent, or less than half of the approximately 2.5 per cent share in the first quarter of 2007. India's big-ticket global acquisitions in the first quareter of 2007 were Tata Steel's acquisition of the UK-based Anglo-Dutch steel maker Corus and Hindalco's acquisition of Nouvelis.
In 2008 Indian companies were involved in 125 deals valued at $9.64 billion at the end of March, down from 148 deals with a combined value $33.85 billion in the first quarter of of 2007 - an over 70 petr cent decline by value.
The major deal involving an Indian company this year was Tata Motors' $2.3-billion acquisition of Ford Motor's luxury car brands Jaguar and Land Rover.
Although, the valuations of the companies have gone down, the banks are cutting down their exposure to funding the deals.
