In May, Adani’s Holcim acquisition more than doubled the deal value in the corporate sector: Report

In May 2022, India Inc’s deal value more than doubled to $19.1 billion over 190 agreements, thanks to Adani Group’s acquisition of Holcim.

According to a report released on Monday, India Inc’s deal value more than doubled to $19.1 billion in May 2022, thanks in part to Adani Group’s $10.5 billion acquisition of global cement giant Holcim.

According to a research by consultant firm Grant Thornton Bharat, overall transaction activity – which includes mergers and acquisitions, the private equity landscape, and public market activity such as IPOs – was $7.965 billion a year ago.

However, when compared to April, overall activity was down 59 percent in terms of value due to the $40 billion merger between HDFC Bank and HDFC, according to the report.

Apart from Adani’s purchase of ACC and Ambuja Cements from Holcim, Reliance and Bodhi Tree made a $2 billion investment in Viacom18 in May 2022, according to the research, and there were 13 other high-value acquisitions totaling $5.1 billion during the month.

It added that the number of transactions in May was 190, compared to 120 in the previous month, and that the numbers were just 3% higher than in April.

“Start-up, e-commerce and IT-led the deal volumes for the month, while manufacturing, media and entertainment and energy topped the overall value,”  the firm’s partner Shanthi Vijetha said.

In May 2022, there were 40 merger and acquisition transactions worth $11.9 billion, with more than a fourth of those coming from the startup sector, which saw 11 agreements worth $70 million.

It added that private equity investments reached new highs of $7.2 billion over 150 agreements, representing a 169 percent increase in value and an 81 percent increase in deal volume.