M&A activity sees 52.8% YoY growth to US$ 148 bn: Report

Merger & Acquisition (M&A) activity involving Indian businesses has witnessed a 52.8% Year-On-Year (YoY) growth at US$ 148 billion, according to a report from market research firm Refinitiv.

According to the report, the number of announced deals for the first nine months of this FY23 increased by 20.5%, from last year. The top deal was seen at the HDFC-HDFC Bank merger, at a value of US$ 60.4 billion.

Experts said that despite global economic concerns, deal activity hit record levels. Companies in verticals such as financials, technology, healthcare, energy & power, and industrials are further expected to consolidate in future, to gain value and create value. 

As per media reports, acquisitions backed by Private Equities (PE) in India have witnessed a 35% growth from last year. In Asia Pacific’s PE-backed acquisitions, India has gained 8% of the market share. 

Domestic M&A activity in India increased by 190.6% from 2021, reaching US$ 105.6 billion. Inbound M&A activity declined by 38% from last year, however, outbound M&A activity increased by 82.4% YoY, reaching a four-year high at US$ 8.8 billion. The report said that 46.9% of the country’s outbound M&A’s market share was captured by the US. 

Media reports said that India-involved M&A market activity was led by the financial sector at US$ 69.4 billion (which witnessed a three-times increase from 2021 and gained a market share of 46.9%), followed by the high technology sector at US$ 18.6 billion (which saw the most number of deals from 2021, gaining a market share of 12.5%) and industries at US$ 12.5 billion (which witnessed an increase of 98.5%, gaining a market share of 8.5%). 

Source: Hindu BusinessLine