Indian M&A Market Grew By 12 Percent: EY Report

NEW DELHI: The Indian mergers and acquisitions market registered an increase of 12 percent with disclosed deal value worth $22.6 billion in FY14 from $20.1 billion seen last year, said global advisory services firm Ernst & Young (EY)

"The country continues to be a major attraction for global players, as evinced by their continuing interest in the country's growth story. We remain optimistic about the M&A outlook as it continues to stabilize over the next year," said Amit Khandelwal, national director and partner, transaction advisory services, EY.

However, the EY's annual review of the M&A landscape showed the number of M&A transactions involving Indian companies was relatively muted in fiscal 2013-14, which stood at 674, down by 20 percent against 843 deals seen in FY13.

The report noted that in FY14, India witnessed 293 cross-border transactions with an aggregate disclosed deal value of $17.8 billion, which was 20 percent higher in terms of value as compared to FY13.

The advisory services firm said that inbound deals led the pack, both in terms of value and volume, as foreign acquirers moved to capitalise on the falling Indian rupee by buying domestic assets.

"Inbound deal value for FY14 stood at $10.9 billion, up by 29 percent from the previous year ($8.4 billion). Additionally, the share of inbound deals in the total M&A value increased to 48 percent in FY14 from 42 percent in FY13," the report said.
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