India Inc strikes deals worth $50 bn in 2014

New Delhi, January 29

Total number of merger and acquisition (M&A) deals of Indian companies in 2014 rose to 1,177 — the highest ever in a decade — and the momentum is set to pick up this year as well, says a report.

The value of the merger & acquisition (M&A), private equity deals stood at over $50 billion in 2014 as against $38 billion through 947 transactions in 2013.

M&A contributed close to $38 billion from 573 deals and PEs contributed $12 billion from 604 deals, the report by tax and advisory firm Grant Thornton said.

“2014 deal value at $50 billion has been a fantastic year for deal-making with a strong foreign investor interest in India. I expect 2015 deal-making to even higher levels,” Grant Thornton India LLP Partner Raja Lahiri said.

Lahiri added that “while the economic and growth sentiments are extremely positive, one expects more traction on the Government reform agenda in 2015 which would further trigger the growth agenda for the economy and deal-making scenario.”

Domestic and inbound deals have been the highlight in 2014 as global players bet on the revival of India growth story or consolidating their holdings in Indian subsidiaries.

Domestic M&A deals are largely riding on the consolidation wave with Sun Pharma acquiring Ranbaxy, Kotak merging with ING Vysya, Flipkart looping in Myntra and a few large power sector mergers and acquisitions, the report said.

Another key driver behind deals was overleveraged companies finding ways to cut debt or companies hiving off non-core businesses or assets. — PTI