Report says mergers and acquisitions, other corporate deals last year crossed pre-pandemic levels

Despite global challenges, mergers and acquisitions (M&A) and other corporate deals in India are set to grow by 29 per cent in terms of value in 2022 over 2021 to reach $159 billion, more than the pre-Covid level. A total of 2,103 transactions took place during this period. PwC’s report ‘Deals in India: Annual Review 2022’ states that in contrast to the trend in the world’s major economies, India witnessed stability in corporate deals. According to the report, mergers and acquisitions constituted a significant portion of the total deal value.

There were over 20 merger and acquisition deals worth $107 billion. This is almost double as compared to 2021. It said, “If the $ 60 billion deal of HDFC Ltd and HDFC Bank merger is excluded, the deal value is about 15 percent less than that of 2021.” At the same time, private equity (PE) investment was 22 percent less than in 2021 ie $ 52 billion. However, in terms of value and volume, it is 20 per cent higher than the last three years.

Dinesh Arora, partner and leader-deals, PwC India, said, “In 2022, we see that investors have a long-term outlook on India. However, there is a slowdown in the current market, but this need not worry anyone much. We believe that mergers and acquisitions will be an essential vehicle for companies to grow, integrate supply chains, beat disruption and increase market share. Domestic deals accounted for 72 per cent of the deal value. If the HDFC merger deal is also included in this, the figure would go up to 88 per cent.

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