India Inc has done more mergers and acquisitions in the first half of 2006 than in the whole of 2005.
In fact, India has left China and South Korea behind in the M&A league table for the Asia Pacific region, and lags only Japan and Australia.
Indian companies struck deals worth $25.6 billion in the first six months of 2006, up from $8 billion in the first half of 2005, and $23.6 billion for the whole year.
Corporate India's M&A growth rate also outperformed the average increase of 32 per cent in the Asia Pacific region during the period. Japan and Australia bagged the first and second slots, with deals worth $64.2 billion and $33.2 billion, respectively.
Those following India were: South Korea ($25.2 billion), China ($21 billion), Hong Kong ($17.1 billion), Malaysia ($9.1 billion), Singapore ($8.2 billion), Thailand ($6.6 billion), Indonesia ($6.5 billion), and The Philippines ($1.7 billion).
According to the 10th edition of PricewaterhouseCoopers' M&A bulletin, the key drivers for the growth in Indian M&A were entry into new markets, establishment of leadership positions by existing players, extension of domain knowledge by acquisition of know-how, focus on infrastructure, and the potential to enter the fast-liberalising Indian market.
Amit Mukherjee, partner, Ambit Corporate Finance, said the first half of 2006 had witnessed a sharp increase in outbound deals.
"In the years to come, outbound deals will find only one way to go: up and up. Indian promoters are now confident of managing overseas assets."
In June alone, 10 cross-border M&A with a total valuation of $1.5 billion were signed. In the first six months to June, 76 cross-border deals worth $5.2 billion were finalised.