M&AS
IN INDIA HIT $5.37 B IN JUST 5 MONTHS
Mergers and acquisitions in India has touched
$5.37 billion in the first five months of the year (till May
end) of this calendar year, which works out to 3% of Asia-Pacific
deal value. Significantly Asia-Pacific contributed to 23%
of global volumes which was at $680 billion for the first
quarter and 18% of global volumes ($971 billion) from January
to May.
The M&A activity in Asia-Pacific has gone
up with total deals for the first quarter at $130 b more than
double that of the first quarter of 2004 when it was at $56
b. The total M&A volumes in the region for the last calendar
year was at $234 b, while till May end it was $179 b.
JP Morgan's Global M&A Review has analysed
activity across a number of countries in sectors such as banking,
property, healthcare and pharmaceuticals.
The UB-Shaw Wallace deal has been listed among
the top 10 deals in the consumer/healthcare sector in Asia-Pacific.
UB Group's McDowell & Co and its affiliates entered into
an agreement with the promoters of Shaw Wallace, to acquire
its 54.54 % stake in the company for Rs 325 per share. The
other major deal which had been announced early this year
was the Holcim- ACC deal. Incidentally, no transaction from
China has also been figured in the top 10 deals from the region.
Mittal Steel's $300 mn acquisition of Huan Valin Steel Tube
& Wire in China has figured among the top 10 deals in
natural resources.
“There has been an increased interest into
India. The last twoyears there was barely any interest from
the MNCs which kicked off post the IBM-Daksh deal. The developed
markets itself were going through a bad phase between 2001-2003.
The last 10 years have also seen a lot of domestic consolidation
across sectors. For example the top 4 companies in the cement
sector had a total capacity of 35% while currently the top
3 would account for 53% of the market,” said Vedika Bhandarkar,
MD & head investment banking, JP Morgan Chase.
Out of the total volumes of $179 bn in M&A
-Japan contributed the highest at 61% and also 6 of the 10
largest deals, followed by Australia 16%, South Korea and
China at 5% each, Indonesia 4%, Hong Kong and India at 3%,
Taiwan 2%, Singapore and Malaysia at 1% each. The financial
sector contributed the highest volume of 43% in the region
followed by diversified industries at 26%, natural resources
at 12%, consumer and healthcare at 11%, TMT 5%.
The largest M&A deal announced in Asia
was in the Japanese banking system— Mitsubishi Tokyo Financial
and UFJ Holdings for a value of $41.4 billion.
