Pandemic hits M&A activity in India, Asia Pacific

03, Apr. 2020

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By Atul Ranjan

NEW DELHI, NNA - Corporate deal making in India is facing the brunt of the ongoing global Covid-19 pandemic with the overall merger and acquisition (M&A) activities involving Indian companies declining 14 percent to $23.2 billion in the first quarter (Jan-March) of 2020 over the same period last year, according to Refinitiv, a global financial market data and infrastructure provider.

Only 433 deals were sealed, a drop from 504 in the corresponding period last year to its worst performance since 2016.

“Corporate deal making activity in India has been hampered as the coronavirus pandemic drew and redirected the attention of the global community and spurred volatile markets,” Elaine Tan, a senior analyst at Refinitiv, said in a statement on Thursday.

In the first quarter, countries such as France, Japan and the United States were the most active players, respectively accounting for 33.3 percent, 19 percent and 16.5 percent of inbound market shares in India.

The majority of the deals targeted the energy and power sector, amounting to $7.6 billion, up a massive 82.8 percent from a year ago. They also captured 32.7 percent market share, said Refinitiv.

The coronavirus fallout in the Asia Pacific region excluding Japan saw M&A activity slowing down by 2.5 percent to $189.6 billion in the first quarter to its lowest level since 2014.

“Number of announced deals also fell to a five-year low and declined 17.6 percent from the first quarter of last year,” said Refinitiv.