The economic turmoil, which has gripped the world, has slowed down the pace of US-bound acquisitions by Indian companies. In the first half of 2008, India Inc’s US-focused merger and acquisition (M&A) activities have dropped 30% in value terms compared with the first half of 2007. M&A activities decreased by 15% in volume terms.
“In the first half of 2008, Indian companies accounted for 34 US-bound acquisitions, with a cumulative transaction value of over $5.1 billion. This represents a 15% decrease in terms of volume and a 30% drop in value terms compared with the first half of 2007,” Virtus Global Partners, a US-based-India focused investment banking firm, said in its M&A report released on July 7.
However, according to Virtus Global Partners managing director Anil Kumar: “It has created significant buying opportunities for well-capitalised Indian companies. Compared to only one transaction of over $1 billion in value for 2007, there were three such transactions in the first six months of 2008 alone.”
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