Over $8bn M&A deals struck in May

Mumbai: The second Covid wave does not seem to have disrupted M&As and investor interest during May, with a 44% increase in deal values and 21% in volumes, compared to the corresponding period of last year. Overall, 121 transactions — including PE deals 一 aggregating to $8.2 billion were reported during the month. As against this, the activity was muted in May last year due to a nationwide lockdown during the first Covid wave.

There has been a 39% increase in deal volumes, with a robust 15% in transaction values year-to-date. Deals continued unhindered this year as corporates were in advanced stages of negotiations, and had adapted to the Covid situation, industry experts say. Since lockdowns are more ‘localised’ now, the deal activity is expected to continue this trend.

In the M&A space, the information technology sector with nine deals leads in volumes, while in terms of value, it was energy & natural resources. There were a total of 37 M&A transactions totalling $5.3 billion, with 84 PE deals valued at $2.9 billion struck in May, according to latest data collated by Grant Thornton.

The M&A space is led by Adani Group’s $3.5-billion acquisition of SB Energy, one of the largest deals in the renewable energy space. In the PE space, startups are driving volumes with a 62% share, while transports and logistics capture values with 25%. PE major Blackstone Groups acquisition of Embassy Industrial Parks at an enterprise valuation of Rs 5,250 crore is the largest PE deal for the month, as well as the largest investment in the Indian logistics and warehousing segment.

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