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Mergers & Acquisitions declined by 11.5 percent in 2013

Jan 4, 2014 18:33 IST

Merger & Acquisitions (M & A) in the India economy declined by 11.5% in the year 2013. This was revealed by the data compiled by Thomson Reuters on 3 January 2014.

The data compiled by Thomson Reuters showed that the number of deals declined by 12.6% to 967 from 1107 in 2012.
The decline in the M & As by 11.5% to 31.5 billion dollar in 2013 was the lowest since 2009 when it had stood at 21.5 billion dollar. The decline reflected the general weakness in the economy.

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During the fourth quarter of 2013, overall M & As aggregated 7.1 billion dollar which was 28.5% more than third quarter of 2013. However, when compared on year-on-year basis, M & As deal in Q4 of 2013 saw a decline of 29.8% compared to Q4 of year 2012.

The average M&A size climbed to 76.1 million dollar because of announcement of more deals above the 1 billion dollar mark. This was higher than the average M & As size of 73.5 million in 2012.

Meanwhile, the economic slump had a larger impact on domestic M & As which plunged 69% to 5.2 billion dollar in 2013. It is the lowest since 2004 when domestic M & As stood at 2 billion dollar. The bulk of domestic activities were on the materials sector with deals worth 1.5 billion dollars being clinched. It constituted 29.4% of the total domestic M & As, but this again was a massive 75.4% lower than 2012.

Completed M & A deals involving domestic companies aggregated 29 billion dollar which was 49.5% higher than 19.4 billion dollar in 2012.

Energy and power sectors lead the M& A street with 21.1% market share or worth 6.7 billion dollar, which was a whopping 173.3% increase over 2012.

The second slot was occupied by the healthcare players capturing 15.8% of the total with 5 billion dollar worth of deals. The increase was 24.5% higher than in 2012.

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Read more Current Affairs on: Merger & Acquisition , M & As

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