New Delhi, Oct 29 (PTI) Corporate India's M&A deal tallytook a 63.4 per cent hit in the July-September quarter of thisyear, largely because of a "flagging economy" that has led tothe decline, says a Mergermarket report.
According to the global deal tracking firm, the thirdquarter of 2017 experienced a slowdown in Indian mergers andacquisitions, with the deal value declining by 63.4 per centto USD 6.8 billion, compared to USD 18.5 billion in the sameperiod last year.
Moreover, the number of deals announced specific to Indiawas the lowest since 2009, the report said.
"The flagging economy of India with the GDP (growth)slowing to a three-year low of 5.7 per cent appears to havecontributed to the decrease in the market," the Mergermarketreport said.
Telecom was still the most active sector in the year bydeal value, thanks to two large deals both valued over USD 1billion in the first half of 2017.
During the third quarter of 2017, technology's deal valuerose four times to reach USD 2.9 billion, from USD 577 millionin the same period in 2016.
The top deal in the technology sector in the Septemberquarter saw SoftBank acquire a 20 per cent stake in Flipkartfor USD 2.6 billion, which is also the second largest deal inIndia this year, the report stated.
"In order to cope with intense competition, moreactivities within the sector are likely to appear in future,"the report added.
India's in-bound activity in January-September increasedby 20.5 per cent to USD 16.8 billion, from USD 14 billion ayear ago.
While Indian M&A activities appear to be slowing in 2017,private equity buyouts saw 66 deals worth USD 7.4 billion intotal, the highest deal value till September this year onMergermarket record (since 2001).
The real estate sector saw maximum action in terms ofvalue, with 4 deals valued USD 1.8 billion in the January-September this year. The deals in question include theSingapore sovereign wealth fund GIC's USD 1.34 billionacquisition of Indian commercial properties developer, DLFCyber City Developers, in August, the report added. PTI DRRARDSBT.
This is unedited, unformatted feed from the Press Trust of India wire.