Professional Documents
Culture Documents
January-July15
Source: Mint
70
inbound
M&A
transactions
worth
almost
Inbound transactions made up half the overall M&A deal value of $20.34
billion in the January-July period. Overall, 322 deals worth $20.34
billion have been closed this year.
Reasons
gradual
improvement
in
terms
of
government
policies
and
Facts
The biggest inbound acquisition this year has been Centerbridge Partners Lps
purchase of SuzlonLtds German subsidiary Senvion SE for $1.2 billion. This
was followed by Reliance Industries Ltds sale of 50% stake in Eagle Ford Shale
in
the
US
for
almost
$1.07
billion.
Harman
International
Industries
Mylan Inc.s acquisition of Famy Care Ltds women health care business for $750
million
and
Alibaba
Groups
minority
stake
acquisition
in
One97
Communications Ltd (which owns Paytm) for $575 million have been other significant
deals.
Globally, M&A transactions are close to touching the record high of $3 trillion seen in
2007. According to a 14 August report by Reuters, global M&A activity has already
reached $2.9 trillion this year.
Road Ahead
The average P/E (price to earnings) multiple is around 18, which is considered a
good point for entry. It reflects a good opportunity going forward and also reflects
healthy earnings
Sectors such as information technology (IT)/IT-enabled services (including ecommerce), pharma-healthcare and manufacturing are seeing the maximum deal
activity. Foreign investor interest in core infrastructure sectors is still limited.
Skepticism exist on the infra side, especially in the power sector where coal linkage,
power purchase agreements and evacuation of power still remain a challenge.
Financial restructuring of assets and lower interest rates will help the sector.