Saturday, April 16, 2011

Macroeconomic factors dragging down M&A in Q1 2011

Though experts had expected a huge rise in Mergers and Acquisitions deals in 2011, the first quarter has been a drab, with only 40 M&A deals being announced. This was mainly due to high valuations and increasing uncertainty about macroeconomic factors such as fiscal deficit, interest rates and inflation made corporates watchful.

But going ahead, I expect a much better performance, as cash-rich Indian companies continue to hunt for strategic bargains globally. We could see a particular focus on Indian public sector companies targeting global oil assets as well as domestic companies looking to acquire iron ore and coal for their growing steel and power operations.
Please follow the link below to see my analysis of the M&A sector in India for the first quarter of 2011.
Source: ISI Emerging Markets Database

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