India to see healthy M&A activity: EY

Source: The Hitavada      Date: 23 Jan 2018 10:51:16



MERGER and acquisition (M&A) activity in India is expected to remain positive this year driven by domestic consolidation, market share expansion and entry into new markets, says an EY report. According to EY’s 17th Global Capital Confidence Barometer (India), companies are embracing the ongoing digital evolution and adopting an inorganic route to growth amid supportive economy and easing credit availability. “Despite dynamic global geopolitical conditions, Indian corporates are positive on the domestic deal market on the back of stable economy, positive deal market fundamentals and a promising deal pipeline,” said Amit Khandelwal, Managing Partner, Transaction Advisory Services, EY.

According to EY, the year 2017 recorded 1,011 deals with a disclosed deal value of USD 40,961 million. Khandelwal further noted that the Government's focus on reforms along with resilient capital markets and favourable credit environment should stimulate investments and encourage corporations to actively plan their acquisition strategy. As per the report, Indian executives remain positive on M&A prospects in the country with 55 per cent of them expecting their companies to actively pursue M&A in the next 12 months.

Moreover, 64 per cent of survey respondents expect the local M&A market to improve further in the next 12 months.