Mergers & Acquisitions declined by 11.5 percent in 2013

Merger & Acquisitions (M & A) in the India economy declined by 11.5% in the year 2013.

Jan 4, 2014 18:33 IST
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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.


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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