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

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 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.

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