Home Business M&A deals move into slow lane, drop 43% in terms of deal value since Jan | Company News

M&A deals move into slow lane, drop 43% in terms of deal value since Jan | Company News

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M&A deals move into slow lane, drop 43% in terms of deal value since Jan | Company News


The merger and acquisitions (M&As) in India have moved into the slow lane, as they dropped 43 per cent in terms of deal value to $13.37 billion since January this year to date, compared to the same period last year.


As per data sourced from Bloomberg, Indian companies had reported deal value worth $23.5 billion between January to 22 March 2023. Data Infrastructure Trust’s acquisition of American Tower Corporation’s India telecom towers business for $2.5 billion was the top deal for the ongoing quarter so far, followed by Highway Infrastructure Trust’s acquisition of PNC Infratech’s road projects for $1.08 billion.

In terms of the number of deals, India Inc, however, witnessed 675 deals since January to date, compared to 547 deals, a growth of 23.4 per cent reported in the same period of 2023 (see chart). The acquisition of the US major Paramount Global minority stake in Viacom18 by Reliance Industries for $518 million was among the top five transactions in the year so far, as per the Bloomberg data.


“The slowdown in M&As is a global phenomenon with most of the Indian companies conserving their cash right now. Uncertainties related to two ongoing wars, the Red Sea supply chain disruption, and general elections in India are some of the reasons why M&A deals are in a slow lane this year,” Prabal Banerjee, a strategic finance consultant, said. Bankers said once the elections are over, M&A deals would see an uptick as Indian companies will become more confident of writing cheques. “We expect to see some big deals in the second half of 2024 as negotiations on several deals are currently underway,” said a banker, asking not to be quoted.


Aurojyoti Bose, an analyst at GlobalData, says India is a key Asia Pacific region market for deal activity, including venture capital funding, and stands just next to China in terms of volume. It has seen a decline in deals in January and February. A similar trend was visible in the Asia Pacific region, which reported 1,843 deals (mergers & acquisitions, private equity, and venture financing deals) during January-February 2024, a year-on-year (YoY) decline of 19.6 per cent compared to the 2,292 deals announced during the same period in the previous year, as per Global Data, a data and analytics company.

India M&A


Jan 01-March 22

Deal Count

% chg

Amount $ Bn

% chg

2020 Q1

455

-2.8

21.80

-7.2

2021 Q1

495

8.8

28.80

32.1

2022 Q1

935

88.9

28.60

-0.7

2023 Q1

547

-41.5

23.50

-17.8

2024 Q1

675

23.4

13.37

-43.1


Source Bloomberg

First Published: Mar 24 2024 | 4:57 PM IST