Mumbai: Mergers and acquisitions involving domestic companies jumped to the highest level since 2011 to USD 26.1 billion during the first nine months this year.
The amount is up 16.5 percent from the year-ago period.
During the first three quarters of 2011, the domestic M&A market had stood at USD 34.5 billion, according to the data collated by Thomson Reuters.
The average M&A deal size climbed to USD 75.2 million in the January-September period, against USD 63.1 million a year ago as most deals were in the USD 500 million-plus range.
Out of this, domestic deals accounted for USD 11.1 billion, up 206.6 percent over 2103, due to Sun Pharmaceutical's pending acquisition of Ranbaxy for USD 4.1 billion. The deal pushed the healthcare sector to capture 40.3 percent of domestic deal activity.
However, total cross-board M&As plunged 40.2 percent to USD 10.7 billion from the last year levels as both inbound and outbound activity declined. While inbound deals fell 24.6 percent, outbound deals plummeted 70.2 percent over the same period last year.
Total worth of completed deals amounted to USD 21.6 billion, up by 3.6 percent to USD 22.4 billion in 2013.
Healthcare deals topped the deal street in market share with 23.2 percent at USD 6.1 billion, an increase of 145.8 percent increase from the first nine of 2013, making it the highest since 2008 when it stood at USD 6.2 billion.
Energy and power sector followed next with 14.4 percent of the deals at USD 3.7 billion, but down to 39.8 percent from the same period last year.
Technology, media, and telecom sector together managed a market share of 16.7 percent at USD 4.3 billion from the first nine months of 2013, up by 35 percent.
The bulk of inbound deals focused on consumer staples sector in terms of deal value, with USD 2.2 billion, despite a 41.9 percent fall over a year ago. Consumer staples captured 24.7 percent of inbound M&As followed by energy & power as well as healthcare with 16.6 percent and 16.2 percent market share respectively.
Outbound deals were dominated by the industrial sector, with USD 551 million, up by 65.9 percent or 30.1 percent of foreign acquisitions.
Again, energy and power sector stood close behind with 27.1 percent market share, with deals worth USD 96.1 million.
Meanwhile, investment bankers's advisory fees jumped by 22.4 percent.
As per Thomson Reuters/Freeman Consulting estimates, the advisory fees from completed deals totalled USD 101.5 million during the first nine months of 2014.
Bank of America Merrill Lynch led the pack with USD 15.9 million in fees, accounting to 15.7 percent of market share of the fee pool, data collated by Thomson Reuters said.
