Feb. 24 – More cross-border mergers and acquisitions are expected in the coming days in India thanks to sufficient liquidity and bullish stock markets says DSP Merrill Lynch Managing Director Raj Balakrishnan.
Mergers and acquisitions (M&A) are expected to increase in the months ahead as the Indian economy recovers from the financial crisis. Last year, M&A deals were drastically cut when the global financial crisis forced many businesses to take the conservative route and delay expansion plans.
According to the Press Trust of India, M&A volume more than doubled in January as deals worth about US$3 billion were announced amid improved signs of liquidity. There were 29 domestic deals worth US$2,303 million compared with 14 transactions worth US$589 million during the same period last year.
Majority of the deals were targeted towards telecommunications, logistics and banking, finance and insurance industries worth a total of US$2.1 billion, US$164 million and US$117 million respectively according to financial research services provider V.C.Edge.
“There are several indications that mergers and acquisitions will continue to improve and we will see more deals happening this year compared to last year,” Balakrishnan was quoted by Press Trust of India as saying.
China Briefing’s Guide to China Mergers & Acquisitions is available here. The India Briefing Guide to Doing Business in India, complete with a section on Indian M&A, will be available in May.
