The mergers and acquisitions (M&A) activity of India Inc seems to be running out of steam as the deal value has fallen 71 per cent in the first three months of this calendar year, compared with the same period in 2007.
While there has been a marginal decline in the number of deals from 148 to 125 in 2008, the deal value has seen a sharp slump from $33.85 billion to $9.64 billion, according to a Grant Thornton study.
Fears of an expanding credit squeeze in global markets have put a question mark on the M&A appetite of companies, more so because financing has become a challenging task. Global markets have plunged more than 25 per cent since last year, putting brakes on the expansion plans of companies.
Even though the M&A drive of India Inc has witnessed a slowdown, India Inc’s acquisition spree is restless with outbound deals continuing to steal the show. And if experts are to be believed, 2008 will see more outbound deals than inbound ones.
Read more in The Business Standard article.
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