According to a report by the Mercom Capital Group, the total M&A and global corporate funding, including venture capital (VC), debt financing and public market financing in the global solar sector stood at $9.7 billion in 2018, a 24% drop from a year ago. The top investors in large-scale projects included the European Bank for Reconstruction and Development (EBRD), which invested in 16 projects, followed by the Dutch development bank FMO with seven deals, and Natixis with six deals.
The merger and acquisition (M&A) deals involving Indian companies more than doubled to reach $129.4 billion in 2018 from its previous highest of $67.4 billion in 2007. The data has been compiled by Thomson Reuters. While the number of M&A deals also witnessed a 17.2% growth y-o-y, the average M&A deal size for transactions with disclosed values increased to $127.8 million in 2018 compared to $82.8 million in the previous year. US based Walmart’s acquisition of Flipkart for $16 billion accounted for 33.1% of the inbound M&A deals (foreign firms acquiring Indian companies).
The cabinet approved the three-way merger of Dena Bank and Vijaya Bank with Bank of Baroda (BoB) on Tuesday to create India’s third largest banking entity by assets. As per the share swap ratio announced, shareholders of Vijaya Bank and Dena Bank will get 402 and 110 equity shares of BoB respectively, for every 1,000 shares held. A Mint analysis of the ratio shows that the Dena Bank shareholders will lose Rs 4.80 per share while Vijaya Bank shareholders will lose Rs 3 per share. The calculations are based on the closing market price on Wednesday.
The Union cabinet today approved the three-way merger between Bank of Baroda, Dena Bank and Vijaya Bank announced in September 2018. Bank of Baroda will issue 110 shares of Rs 2 each for every 1,000 shares of Dena Bank while shareholders of Vijaya Bank will get 402 shares of Bank of Baroda for every 1,000 shares held. The merged entity would be the third-largest bank in India by assets. It will have combined assets worth Rs 6.4 lakh crore and deposits worth Rs 8.41 lakh crore. The combined gross bad loan ratio could be around 13 percent, the government estimated.