Mergers and acquisitions deal values surge 66 pc in India against global average of 10 pc
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The mergers and acquisitions (M&A) deal activity in value in India surged 66 per cent in the first nine months this year, outpacing 10 per cent growth globally and 5 per cent decrease in the Asia-Pacific region overall, according to a report on Wednesday.
The M&A activity in India has been strong in 2024, bucking the trend in the other Asia-Pacific markets, according to a global report from Boston Consulting Group (BCG)
“This highlights India’s unique resilience and appeal. Sectors like technology, media, industrials and healthcare have been key drivers of large deals, capitalising on the ‘Make in India’ initiative, India’s strengthening ties with US and Europe coupled with ongoing regulatory tensions between China and the West,” said Dhruv Shah, Managing Director and Partner, BCG.
Deal volume in India declined by 3 per cent in the reporting period but not as sharply as it did globally (13 per cent) or in the Asia-Pacific region as a whole (13 per cent).
The deals focused on technology, media or telecommunications accounted for 40 per cent of the total deal value during the first nine months this year.
“Despite cautious global sentiment, industrial companies continue to lead Indian dealmaking in 2024. Healthcare targets also remain an important focus, driven primarily by domestic deals as companies strive to maintain their leadership positions,” the report noted.
Over the longer term, dealmaking in India will remain robust as companies with strong balance sheets seek assets with attractive valuations.
“Companies with strong balance sheets will continue to look for opportunities to grow inorganically, and private equity and venture capital investors will seek to deploy record-high dry powder as India continues to be an investment destination of choice”, said Shah.
