Cross border M&A deals in India touch $4.4 billion in April

With a record inward flow of capital, worth $2.28 billion, into the country, the total merger and acquisition (M&A) deal value has touched $4.4 billion (around Rs19,800 crore) in April this year.

With foreign companies and their subsidiaries continuing to remain bullish on India business prospects, global consultancy firm Grant Thornton said as many as 64 M&A deals, worth $4.4 billion, were announced in April.

Of these, the total value of outbound deals whereby Indian companies acquired businesses outside India in April was $1.91 billion from 21 deals and while the total value of inbound deals was $2.28 billion (17 deals), the report added.

According to Harish H V, partner, India Leadership Team at Grant Thornton India, a flood of cross border deals had been seen in the market and they comprised almost 95 per cent of the total value of M&A deals for April and 88 per cent for the period January to April 2011. He added that inbound deals had picked up significantly over outbound.

He said corporates had put behind them fears of global recession and were back for deals on a global platform.

Meanwhile, domestic transactions have taken a back seat with the total value of domestic deals in April this year recorded at $0.21 billion from 26 deals as against $1.03 billion through 60 deals.