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Value of India M&A deals in 2017 seen at $46.5 bn, $52.8 bn in 2019

In 2018, the global M&A activity will accelerate due to the easing of key economic and political risks and the emergence of positive macroeconomic deal drivers, says the Baker McKenzie report. Photo: MintPremium
In 2018, the global M&A activity will accelerate due to the easing of key economic and political risks and the emergence of positive macroeconomic deal drivers, says the Baker McKenzie report. Photo: Mint

Value of India M&A deals is expected to reach $46.5 billion from 944 deals in 2017, boosted by Rosneft's $13 billion takeover of Essar Oil, says a Baker McKenzie report

Mumbai: Mergers and acquisition (M&As) activity may reach $46.5 billion in 2017 and is likely to touch $52.8 billion in 2019, aided by government efforts towards ease of doing business, says a report.

In 2018, the global deal activity will accelerate due to the easing of key economic and political risks and the emergence of positive macroeconomic deal drivers, a report by American law firm Baker McKenzie said.

“India M&A is expected to reach $46.5 billion (944 deals) in 2017, boosted by Rosneft’s $13 billion takeover of Essar Oil," the Chicago-based firm said. The 2017 figure represents a 165% increase in value and a 70% jump in volume from 2016 ($17.5 billion, 553 deals).

“M&A activity is expected to continue to gather pace on the back of government’s continued efforts in removing regulatory hurdles and simplifying laws to further attract foreign investment, until it reaches its cyclical peak of $52.8 billion in 2019," the report said.

Pending the results of the 2019 national elections, there is potential for more ambitious economic reform. The report further said domestic IPO is set to reach a record-breaking value of $6.8 billion this year. Finance Minister Arun Jaitley’s plans to raise Rs72,500 crore from disinvestment in 2018, including Rs15,000 crore from strategic asset sales will help to sustain this IPO momentum.

Baker McKenzie’s head (India practice) Ashok Lalwani said the flurry of IPO activities is likely to continue for the rest of this year and well into the early part of 2018, as corporate India seeks to take advantage of a surging domestic equity market.

“As the country prepares for the general elections in 2019, I will not be at all surprised to see a surge of IPOs by private companies in the next few months before the deal window closes," Lalwani added.

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