India’s Mergers and Acquisitions Activity Up by 33 Percent

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Apr. 29 – India’s mergers and acquisitions activity during the first quarter of the year increased by 33 percent with total transaction value estimated at US$14 billion, one of the best performing quarters in terms of value, according to a report by an independent mergers and acquisitions intelligence service.

Inbound and local mergers and acquisitions in the country increased from 40 to 53 during the first quarter of the year compared to the same period in 2009, although the value of the deals went down from the previous quarter’s US$5.1 billion to US$4.7 billion.

This year began with inbound activity posting robust figures with an 81 percent increase by value compared to the same period last year.

The Indian telecommunications industry is rapidly developing the domestic market and expanding overseas. Indian telecom provider Bharti Airtel’s US$10.7 billion acquisition deal for Zain Africa made a huge impact on merger and acquisition activity during the first quarter, pushing it to become the second biggest quarter by outbound value according to Mergermarket records.

“Through acquiring Zain in March and purchasing a 70 percent stake in Warid Telecom in January, Bharti Airtel has substantially strengthened its presence across the globe. Domestically, GTL Infrastructure purchased Aircel’s tower business and Quippo Wireless-TT Info-Services acquired Tata Teleservices’ tower portfolio in this quarter, ” Vinu Lal, head of India Coverage at Mergermarket told Business World.

Overall, India’s M&A activity value comprises more than 4 percent of the market in the region and 11 percent based on deal count.