India M&A deals for Q3-2011 have faltered by 56% to $5.91 billion as compared to the same period in 2010, according to the data released by Grand Thornton. The total M&A and PE deals in the month of August 2011 came in at $2.55 billion.

However, the number of deals has logged a smart 20% growth year-on-year, despite there being a significant drop in the deal value. The number of outbound deals from India stands robust, even as inbound M&A deals slows down on account of crippled investor confidence and worsening euro zone crisis in the West.

Acquisition

Sector wise, mining and telecom space leads the M&A deal space – both of which are facing regulatory hurdles in moving ahead with their growth prospects. Mining was in M&A spotlight as most of the power companies were seen scurrying to assure their fuel supply and coal linkages for their projects.

In all, India saw a total of $4.88 billion of cross-border deals in the third quarter of 2011; out of which $3.69 billion worth of transactions comprised of outbound deals, whereas inbound deals were valued at $1.19 billion.

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