close
close

M&A deal value falls 9% to $38 billion in H1 2024 | Markets News

Posted on by darion

Mergers and Acquisitions, M&A, Transactions

Mergers and acquisitions (Photo: Wikimedia Commons)

3 minutes of reading Last updated: Jul 01, 2024 | 8:51 PM IST

The value of mergers and acquisitions (M&A) transactions in the first half of calendar year 2024, despite rising equity markets, fell 9 percent to $38 billion compared to $41.74 billion in the same period of 2023.

Bloomberg data shows this is the lowest figure since 2017, when it stood at $37.48 billion (see chart).

Data Infrastructure Trust’s $2.5 billion acquisition of telecommunications tower builder ATC Tower is the largest transaction this year.

However, the number of transactions increased by 17.3% in the first half of the year. and amounted to 1,460 transactions compared to 1,245 in the same period last year.

M&A advisors say deal flow depends on factors such as scale, market share, distribution network, synergies and customer access. There may be different combinations of such factors in different sectors and different scenarios.

“Recent actions involving cement or several parts of the financial services sector are examples of such orders. Given the changing economic landscape, deal flow is likely to accelerate,” said Ketan Dalal, founder and managing director of Katalyst Advisors, a tax advisory and M&A firm.

Bhavin Shah, private equity leader and seal leader at consulting firm PwC India, said that M&A activity is expected to pick up in 2024 given a favourable and stable political and economic environment.

Recent acquisitions in the cement industry by Ambuja Cements and Ultratech show that mergers and acquisitions are gaining momentum, say bankers.

Bankers said the next wave of deals will be led by private equity players who have significant “dry pool” (funds that have not been invested) for investment. US private equity giants including Blackstone, KKR and Bain & Co have announced plans to deploy funds for investments in India and are in talks with companies.

“We plan to allocate 20 percent of our $5 billion to India,” Sarit Chopra, partner and head of special situations (Asia) at Bain Capital, said in an interview on Friday.

Private equity players are looking at healthcare, financial services, consumer retail and infrastructure for investment. Officials of Blackstone Inc, the largest investor in Indian companies so far, said they wanted to invest an additional $25 billion over five years.

Goldman Sachs Group Inc. plans to invest $4 billion in the same period. For Singapore’s Temasek fund, it will be $10 billion over the next five years.

KKR & Co plans to invest a significant portion of its new $6.4 billion Asia-focused fund in the Indian infrastructure sector.


MA Offers India

Period the number of transactions % change year-on-year Amount (USD billion) % change year over year
2014 half year 1 414 21.46
2015 half year 1 744 79.7 18.66 -13.0
2016 1st half 895 20.3 25/26 35.3
2017 1st half 799 -10.7 37.48 48.4
2018 1st half 1025 28.3 81.33 117.0
2019 1st half 1040 1.5 46.02 -43.4
2020 1st half 859 -17.4 55.29 20.2
2021 1st half 1240 44.4 62.45 12.9
2022 1st half 1916 54.5 134.36 115.2
2023 H1 1245 -35.0 41.74 -68.9
2024 H1 1460 17.3 38.00 -9.0




Source Bloomberg

Developed by BS Research Bureau

First published: Jul 01, 2024 | 17:16 IST