India-targetted M&A deals dip in 2011; Asia-Pacific resilient: Study
Within Asia-Pacific region, China was the most targeted nation in the region with USD 188.2 billion worth of deals, followed by Australia with USD 136.4 billion and South Korea with USD 53.6 billion.
The merger and acquisition deals targetting India dipped sharply in 2011, but the overall volumes for the Asia-Pacific region remained resilient and at par with the previous year, as per a study.
The total Asia-Pacific (excluding Japan) M&A volume was USD 543.1 billion in 2011, down slightly from 2010 level of USD 543.8 billion, despite a decline in the deal activities in second half of the year, global deal-tracking firm Dealogic said.
On the other hand, the global M&A volume reached USD 2.81 trillion in 2011, an increase of 3 per cent from USD 2.74 trillion in 2010, global deal-tracking firm Dealogic has said.
Within Asia-Pacific region, China was the most targeted nation in the region with USD 188.2 billion worth of deals, followed by Australia with USD 136.4 billion and South Korea with USD 53.6 billion.
India was way behind with just USD 44.4 billion worth of transactions.
"India-targeted volume decreased to USD 44.4 billion in 2011, down 32 per cent from 2010 (USD 65.2 billion)," Dealogic said.
In the fourth quarter of 2011, India's M&A volume dipped 68 per cent from last year, as M&A worth USD 2.9 billion were announced, as against USD 9.2 billion in 2010.
The fourth quarter of 2011 was also the lowest quarter volume since the fourth quarter of 2004 when it stood at USD 2.4 billion.
India inbound M&A volume was USD 30.1 billion and accounted for 71 per cent of total deals in the country, up from a 26 per cent share in 2010 (USD 16.6 billion).
A sector-wise analysis shows that oil and gas was the most targeted sector in 2011, reaching a record high of USD 9.9 billion. Telecom was second (USD 6.5 billion) and finance was third (USD 5.4 billion), Dealogic said.
The flavour of the season in the Asia Pacific region was inbound deals as the Asia Pacific (excluding Japan) inbound volume reached a record high of USD 121 billion, up 16 per cent from USD 104 billion in 2010.
Asia Pacific (excluding Japan) outbound volume totaled USD 118 billion, down 4 per cent from 2010 when it stood at USD 123 billion.