Deal Street hits all-time high of 130 billion in H1 2022 on HDFC Adani Holcim mergers

The $60 billion mega merger of the HDFC twins, the $10.5 billion Adani-Holcim deal as well as the $2.7 billion sale of LIC shares during the June quarter pushed the deal market to a record high of 130.3 billion USD in the first quarter. half of 2022, according to a report Wednesday.

Deals worth $130.3 billion were more than double the value recorded a year ago, making it the highest half-year period since records began in 1980, according to data tabulated by Refinitiv, an LSEG company.

The April to June quarter of 2022 saw the strongest trading activity, bringing total deal value to a record $130.3 billion in the first half of the year, more than double the period of the previous year and setting a historic record. semi-annual record in value and number of transactions announced since 1980, according to the report.

The report attributes these figures to significant growth opportunities in the overall market and domestic consolidations that have supported mergers and acquisitions (M&A), which was led by the $60.4 billion merger between HDFC Bank and its parent company. Housing Development Finance Corporation, making it the largest- ever deal on record in the country.

The number of transactions increased by 30.3% year-on-year and had the busiest period ever. Targeted mergers and acquisitions in India totaled $122.6 billion, up 123.8% from the same period last year, the report said.

A notable theme is the growth in mergers and acquisitions involving the renewable energy and sustainable sectors, which have totaled $11.5 billion so far this year, up 41.7% from last year. And the most significant of these is the $10.5 billion deal struck by the Adani Group to buy the Indian assets of global cement major Holcim – ACC and Ambuja Cements.

However, inbound mergers and acquisitions fell 14.6% to $21.5 billion. The United States was the most active foreign acquirer in India with deals worth $11.3 billion, down 7.9% year-on-year and accounting for 52.3% of M&A incoming.

In contrast, outbound M&As totaled $6 billion, or 73.6% more in value, making it the highest period in the first half since 2010. The United States was the most targeted in terms of value by Indian companies with 31 deals worth $4.1 billion. , or 67.7% of the total, he said.

This development is driven by the pending $3.3 billion acquisition of the biosimilars business of US-based Viatris Inc by Biocon Biologics, making it the largest Indian outbound acquisition ever in the healthcare in the United States.

According to the report, the majority of trading activity involved the financial sector, which totaled $69 billion, a fivefold increase in value from a year ago and captured 53% market share.

The tech sector, which saw the peak number of deals, totaled $16.5 billion, up 78.3% from a year ago with 12.7% market share. Materials captured 11.9% market share and grew 155.2% in value to $15.5 billion.

While most major markets saw a year-over-year decline in revenue and number of IPOs, India was one of the few markets to see an increase in activity IPOs, with revenue growing 26.1% and the number of IPOs up 53.8% year-on-year. from.

A total of $5.2 billion was raised through IPOs in the first half of this year.

The IPO market was led by Life Insurance Corporation’s IPO, which raised $2.7 billion in May, making it the largest domestic IPO ever and the third largest. in the world so far this year.

Equity markets raised $9.1 billion in the first half of 2022, down 39.9% and the lowest first half since 2016, despite the mega sale of LIC. However, the number of ECM deals increased by 11.1% year-on-year.

Follow-up deals, which accounted for 43.4% of overall ECM revenue, raised $3.9 billion, down 63% from a year ago, while the number of tracking fell 13.8% year on year.

Financial sector ECM issuance accounted for the majority of the country’s ECM activity with 34.4% market share and total proceeds worth $3.1 billion, down 56.3 % year over year.

Consumer staples saw a significant increase in revenue and captured 15% market share, while healthcare followed with a 14.6% market share, the report added.


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