M&A activity jumped 34 per cent in 2010: Mergermarket

With the improvement in economic climate, the country witnessed an impressive 166.5 per cent jump in mergers and acquisitions going by deal values in 2010, global M&A intelligence service Mergermarket said on Friday.

In terms of deal count, at 282 transactions, the number of deals increased 34.3 per cent over 2009, while the total deal value was $51 billion, Mergermarket said. 

The share of inbound and outbound deal sizes was almost equal at $24.3-billion and $24.6-billion respectively, although going by deal count, the number was skewed towards the 123 inbound deals, it said.

Telecom topped among sectors, with 16 transactions adding up to $19.6-billion, representing 38.4 per cent of all Indian deals in value, it said. It pointed out that Bharti's acquisition of Zain Africa for $10.7 billion which contributed a lion's share to the pie. 

"India could potentially set a new record in 2011. The inbound deals would be driven by India's strong fundamentals and robust economy, especially in the telecom, pharmaceutical and industrial sectors," Mergermarket deputy editor Anjali Naik said. 

In outbound transactions, Indian companies will be driven by the need to secure raw materials and will look at geographies like Africa, Latin America, Bangladesh and Sri Lanka, beyond the traditional US and Europe, she added.

Rothschild topped within financial advisors for deals with 24 deals worth $30.1 billion, while among legal firms, AZB & Partners emerged the top gainer, having worked on 63 deals with a total value of $31.3 billion.