Global M&A Deal Tally For March Quarter At $597 Billion: Report

New Delhi: Global merger and acquisition deal tally amounted to dollar 597.4 billion in the January-March period of this year, down 24 per cent from the corresponding period last year, says a report.

According to global deal tracking firm Mergermarket, after a record year for M&A in 2015, there has been a cooling down period in January-March, which witnessed the lowest first quarter value in two years.

“Global M&A is re-balancing towards a sustainable level with quarter one (January-March) 2016 amounting to dollar 597.4 billion,” the report said.

Interestingly, the previous three quarters had all witnessed more than dollar 1 trillion deal value.

“The mega-deal frenzy that started in 2014 is winding down as companies look towards less sizeable deals,” Mergermarket said adding a substantial difference this year is the decreasing M&A value in the US (dollar 241.2 billion) and Asia-Pacific (dollar 132 billion), both down more than 30 per cent after witnessing a record breaking tally during 2015.

On India, the report said India-based companies have become more confident in making outbound M&A this year.

“With 23 deals worth dollar 2.2 billion announced, first quarter (January-March) 2016 reached its highest first quarter deal value since 2011, a 455.1 per cent value increase compared to January-March 2015 (dollar 390 million, 19 deals),” it said.

The largest outbound acquisition of the quarter was Indian Oil Corporation, Oil India and Bharat Petroleum’s dollar 1.3 billion acquisition of 29.9 per cent stake in a Russia-based oil field owned by Rosneft.

In line with the global trend, Asia-Pacific (excluding Japan) has experienced a dip in M&A activity, where 700 deals worth dollar 131.8 billion targeting the region represented 34.2 per cent declined by value compared to first quarter of 2015.

The dip follows a lull in Chinese domestic activity with 271 deals worth dollar 69.9 billion, down 64.2 per cent compared to the fourth quarter of 2015 (509 deals, dollar 195.4 billion) the report added.