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

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

October 12, 2022

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

Acquisitions backed by Private Equities (PE) in India have witnessed a 35% growth from last year

Domestic Merger & Acquisition (M&A) activity in India increased by 190.6%

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

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