Deal Activity Declines by 3% in May with Diverging Trends in Mergers and Private Equity

Deal activity in May decreased by 3% to USD 5.023 billion from April's USD 5.192 billion. Mergers and acquisitions fell by 58% to USD 1.05 billion, while private equity deals increased by 49% to USD 3.973 billion. The overall number of deals also dropped by 22%, according to Grant Thornton Bharat.

Deal activity experienced a slight downturn in May, with a 3% decline to USD 5.023 billion from April's USD 5.192 billion, a report revealed on Thursday.

Mergers and acquisitions witnessed a significant plunge of 58% to USD 1.05 billion, down from USD 2.526 billion in April. However, the private equity sector saw a notable uplift, increasing by 49% to USD 3.973 billion from April's USD 2.666 billion.

From a volume perspective, the overall number of deals fell by 22% to 137, according to the consultancy firm Grant Thornton Bharat. Shanthi Vijetha, a partner at the firm, suggested that election processes may have delayed deal-making. The largest merger deal in May was Google's USD 350 million investment in Flipkart, whereas Brookfield India Real Estate Trust made the largest private equity deal with a USD 723 million investment in Bharti Enterprises.