India saw $82.3 billion pending and completed M&A deals in the second quarter, the highest amount on record, according to data compiled by Bloomberg. That\u2019s more than twice as much than the previous record of $38.1 billion in the third quarter of 2019. Globally, M&A volume in the quarter reached $827.6 billion, down 8.7% from the same period in 2021.<\/p>\n
The surge in India was dominated by\u00a0HDFC Bank Ltd\u00a0NSE -0.14 %.\u2019s $60 billion all-stock purchase of Housing Development Finance Corp. in April, combining India\u2019s most valuable bank and largest mortgage lender in the country\u2019s biggest ever M&A transaction. The move illustrated how India\u2019s flagship companies, facing disruptive trends such as the rise of fintech and climate change, are turning to dealmaking as a tactic to dramatically reshape themselves.<\/p>\n
\u201cWhile conglomerates will consolidate to become stronger and gain market share in their core sectors, there will be renewed or new initiatives around two big themes:\u00a0ESG\u00a0and digital,\u201d according to Sonjoy Chatterjee, chairman and chief executive officer for\u00a0Goldman Sachs\u00a0Group Inc. in India. The second in particular is a focus for all companies, no matter the sector, he added.<\/p>\n
\u201cThere won\u2019t be a strategy going forward that doesn\u2019t provide a clear path to deliver this,\u201d Chatterjee said.<\/p>\n
Even without the\u00a0HDFC NSE -0.15 %\u00a0megadeal, India\u2019s second quarter would still rank as its fifth-best quarter on record, thanks to transactions such as billionaire Gautam\u00a0Adani\u2019s $10.5 billion deal to buy\u00a0Ambuja Cements Ltd\u00a0NSE -0.12 %., giving his conglomerate a sizable presence in the industry.<\/p>\n
\u201cThe appetite of strategic investors has definitely increased, with market correction resetting the valuations in India,\u201d said Ganeshan Murugaiyan, head of corporate coverage and advisory at<\/p>\n
Companies in India leading the shift to renewable energy were among the biggest dealmakers. Shell Plc agreed to buy renewable power supplier Sprng Energy Pvt for $1.5 billion in April, while French oil giant Total Energies\u00a0SE purchased a 25% stake in Adani New Industries Ltd. this month. The firm plans to invest more than $50 billion in technologies such as green hydrogen over the next decade.<\/p>\n
Large acquisitions will be challenging to put together, Murugaiyan said. \u201cIt is not that easy to get long term financing and the high-yield leverage buyout market — corporate loans — is literally shut down.\u201d<\/p>\n
Like Chatterjee, Murugaiyan sees the green and digital transitions driving more transactions. His team has grown from nine bankers in 2021 to 12 this year, and he is looking to add another three.<\/p>\n
The next wave of deals could come in the mid-market, where a cohort of aging founders is starting to hand the reins to their offspring.<\/p>\n
\u201cRegularly, we find the next generation has interests in other themes, particularly tech platforms and ESG,\u201d Chatterjee said. \u201cThemes coming out of the pandemic have revised perspectives and choices around what the next generation want to do with their futures — in a very personal way.\u201d<\/p>\n
Source: Economic Times<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":" India saw $82.3 billion pending and completed M&A deals in the second quarter, the highest amount on record, according to data compiled by Bloomberg. That\u2019s more than twice as much than the previous record of $38.1 billion in the third quarter of 2019. Globally, M&A volume in the quarter reached $827.6 billion, down 8.7% from […]<\/p>\n","protected":false},"author":7,"featured_media":99555,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[127],"class_list":["post-99554","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-india","tag-india"],"yoast_head":"\n