Indian companies were involved in 136 mergers and acquisitions (M&A) in the first half of 2009, down 54 per cent when compared with the first half of last year.

The deal activity was also down 28 per cent when compared with the second half of 2008, according to a study by Venture Intelligence, a Chennai-based research service focused on private equity and M&A transaction activity in India.

Deal Value

The average deal value during the first half of this year (for the 55 deals that had announced transaction values) was $98 million, down from the average deal value of $162 million in the same period last year; but higher the $60 million in the second half of last calendar year, the study says.

In the largest deal during the period, ONGC Videsh acquired UK-listed Imperial Energy for $1.9 billion. This was followed by Tech Mahindras $576-million bid for Satyam Computers and Sesa Goas $350-million acquisition of Dempo Mining Corporation.

Over 50 per cent of the deals in the first half were domestic acquisitions against 40 per cent in the same period last year.

Target US

The most preferred destination for Indian acquirers was the US, with seven of the 31 outbound targets in the first half of the year located in that country, followed by the UK (with three deals). The acquirers in eight of the 34 inbound deals were US-based companies, followed by French firms with five deals and German firms with four deals.

The IT & ITES and manufacturing industries accounted for the most number of acquisitions during the first half with an 18 per cent share each, the study says.