M&A up 14.55 % in H120 led; Jio Platforms investments up deal value

As many as 183 deals generated $43.54 billion in 1H20, says report by financial data company.

Mergers and acquisitions (M&A) in India rose 14.55 per cent to $43.54 billion in value terms in the first half of 2020, mainly due to Reliance Industries selling stakes in its digital arm Jio platforms. Deal count plunged by 24.69 per cent year-on-year to 243 transactions.

According to Mergermarket, a report by financial news and data firm Acuris, 183 deals generated $43.54 billion in 1H20, compared to 243 deals fetching $38 billion in 1H19.

International investors acquiring a 24.71 per cent stake in Jio Platforms for $ 15.27 billion drove the increase in M&A deal value in India during the first half of the year.

Inbound deal count reduced by 28.8 per cent (89 deals) in 1H20 however the deal value increased to $ 26.9 billion compared to 1H19 ($ 21.38 billion, 125 deals). The deal value plunged 202 per cent to $ 20.22 billion in 2Q20 compared to $ 6.68 billion in 1Q20, with a dip in deals in 2Q20 (42 deals) as compared to 1Q20 (47 deals).

The 1H20 deal value of $26.9 billion (with 89 deals) represents 71.66% of the total deal value of $37.53 billion (242 deals) reported in the FY19.

Outbound deals dipped by 37.6 per cent in deal value with $ 881million in 1H20 across 21 deals compared to $1.42 billion with 34 deals in 1H19. 1H20 is the lowest first half in terms of outbound deal value and deal count since 1H14 ($650 million, 33 deals).

Domestic M&A generated $16.64 billion in 1H20--on par with the 1H19 levels—but the deal count shrank by 20.3 per cent year-on-year to 94 deals.

The largest domestic deals were the acquisition of GSM mobile services provider Aircel by a group of investors for $2.6bn and the 75 per cent stake sale in Krishnapatnam Port Company (KPCL) to Adani Ports and Special Economic Zone for $1.63 billion. Other high-profile transactions include the divestment of two state-run power utilities: THDC for $1.5billion and NEEPCO for $1.44 billion.