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During the first half of 2009, Indian companies were involved in a total of 136 M&A deals, down 54% from the same period in 2008, according to a study by Venture Intelligence, a research service focused on Private Equity and M&A transaction activity in India.  The deal activity was also down 28% compared to the second half of 2008

The average deal value during H1 ’09 (for the 55 deals which had announced transaction values) was $98 million, down from the average deal value of $162 million in H1’08, but higher the $60 million in H2 ’08, the Venture Intelligence study found. In the largest deal during the period, ONGC Videsh acquired UK-listed Imperial Energy for $1.9 billion. This was followed by Tech Mahindra’s $576 million bid for Satyam Computers and Sesa Goa’s $350 million acquisition of Dempo Mining Corporation.

Over 50% of the deals in H1 ’09 were domestic acquisitions, as against only 40% in H1 ’08.

The most preferred destination for Indian acquirers was USA with seven of the 31 outbound targets in H1 ’09 located in that country, followed by the UK (with 3 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 H1 ’09 with an 18% share each. The activity in the IT & ITES industry however fell from 27% during the same period last year. The share of manufacturing deals fell marginally (from 20%).

Source: Venture Intelligence M&A Deal Database