The value of merger and acquisition activity in India rose to $9.5 billion this year from $5.37 billion in 2005, nearly doubling its share in the global M&A deals to 1.30 per cent from 0.72 per cent.
Globally, 2,932 M&A deals worth $732.32 billion were struck in 2006, compared with 3,000 deals worth $736 billion last year. Of the 113 deals involving India, Indian companies accounted for 53 overseas buyouts valued at $3.91 billion, while overseas companies struck 60 deals worth $5.69 billion.
Data sourced from Bloomberg show that nearly 50 per cent of cross-border deals valued at $710 billion have not yet been completed.
Deals worth $731.32 billion have been completed, of which 247, valued at $136.20 billion, were for listed entities, and the remaining 2,685 deals, valued at $595.12 billion, were struck by undisclosed and unlisted sellers.
As many as 1,458 deals valued at 273.43 billion were struck with mutual understanding, while only 11, valued at $94.46 billion, were hostile takeovers. The data do not throw any light on 1,463 deals valued at $363.42 billion.
The deals were struck for the acquisition of companies or to buy parts of companies. Globally, as many as 1,469 deal-makers acquired $367.89 billion worth of company assets, while 1,463 deals valued at $363.42 billion were for buying divisions.
Most buyers went in for a total buyout or a controlling stake. As many as 1,916 deals, valued at $447.57 billion, were for 100 per cent stake, while 382 deals, valued at $173.96 billion, were for acquiring 50-99 per cent stake.
Most sellers preferred cash over stock or debt. Over 2,500 deals, valued at $556.96 billion, were paid in cash. Deals valued at $99.20 billion were struck on a cash-plus-stock basis, those worth $28.92 billion were through stocks and deals worth $45.80 billion were sealed through an undisclosed payment type. Interestingly, 13 deals valued at $437 million were paid in debt.
Great Britain was the most preferred destination for bidders, with deals valued at $110.6 billion materialising there. The other preferred destinations were the United States ($94.81 billion), Canada (49.68 billion), Luxembourg ($39.20 billion), and France ($23.51 billion). India was the 18th most preferred destination.
Among buyers, the United States topped the list with deals worth $104.49 billion, followed by Great Britain ($65.28 billion), France ($57.68 billion), New Zealand ($47.22 billion) and Japan ($41.18 billion). India was 26th on this list.