Mergers and acquisitions volume in India's banking space increased significantly to USD10.5 billion in the year so far, gathering momentum from the government picking up a majority stake in the country's largest lender SBI (USD 8.7 Bn deal), a report says.
The banking M&As volume increased to $ 10.5 billion through 38 deals during the year so far, while the sector had witnessed 23 deals worth 707 million last year, according to a report by global data provider Dealogic.
Banking M&As tally soared mainly due to the $ 8.7-billion acquisition of 59.73 per cent stake in State Bank of India by the Centre. The stake was bought from the Reserve Bank in June.
Globally, banking M&As volume has increased to $ 369.5 billion through 853 deals during the year so far, up 18 per cent from $ 313 billion in 858 deals in the same period last fiscal.
Interestingly, the average deal size has reached about $ 692 million, up 14 per cent from $ 607 million in 2006.
Cross border deals account for 56 per cent of the total banking M&As volume in 2007 year-to-date as against 25 per cent in same period in 2006, Dealogic report said.
Out of the total global banking M&As volume, the top five deals account for 45 per cent, increasing from 25 per cent in 2006.
Netherlands is the most targeted nation with nine deals worth $ 99.8 billion taking place in that country, up from $ 807 million in the corresponding period last year. It is followed by US at $ 71.7 billion through 204 deals.
Source: The Hindu