Dealmakers eye poll boost for $30 billion M&As in 2014

The Indian mergers and acquisitions market is likely to see increased momentum post elections and experts believe overall deal values in India could exceed $30 billion this year if Lok Sabha polls result in a stable government at the Centre.

Post-elections, the pace is expected to be greater for inbound deals, which have been largely pushed back for many months now for want of better clarity on the policy stance of new government, experts said.

The deal street in India remained moderate during the first two months of the year with only 170 deals worth $4.2 billion as cross-border activity remained tepid, as per Grant Thornton data.

There is a strong sense in the market that the situation would improve post general elections provided the new government's economic policies encourage FDI and make doing business in India easier.

Sanjeev Krishnan, Leader - PE & Transaction Services - PwC India said "if there is a stable government (BJP or any other), economic reforms would be back on the Government's agenda".

"Then India would be looked at much more positively by both strategic and PE investors.

"In terms of numbers, at the minimum, I expect overall deal values in India to exceed $30 billion this year and Private Equity investments to exceed $12.5 billion in 2014 -15. However, if a weak or significant coalition dependence emerges, the numbers could be much lower," he said.

Echoing similar sentiments, Girish Vanvari, co-Head of Tax, KPMG in India said: "Election outcome can be a game changer. If a stable government emerges at the Centre and the new government takes steps to demonstrate stability of tax and regulatory regime in the country, it would restore the much- needed investor confidence."

Vanvari further said that post elections "we could also see the number doubling from year on. Take an example of the recently announced Sun Pharma-Ranbaxy deal, upwards of $4 billion in one deal itself and if there are 4-5 deals like this, imagine where the numbers can be."

The increasing political uncertainty over the past one year alongwith a fear of a fractured mandate and policy paralysis perception have resulted in creating a cautious approach among strategic players, experts believe.

"The year 2014 is being anticipated to be a big year for M&As, especially for big-ticket deals. However, most of it is expected to take off post the general elections," Sumant Sinha, Chairman and CEO, ReNew Power said.

Consumer, healthcare, metals, real estate and telecom sectors might see the biggest share of deals taking place, he added.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • The sudden crisis in oil exporting economies offers India big opportunity

    The unprecedented 6.5 per cent single-day hike in Russian interest rates on Tuesday and the subsequent devaluation of the ruble from 60 to the dollar

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Roopen Roy

Why do we shoot, load and then aim?

There is a joke about what Indians would do in ...

Zehra Naqvi

When humanity died, bestiality prevailed

The terrorist attack that killed 132 children in Peshawar has ...

Dharmendra Khandal

Protecting jungle cats is vital

In what can only be called a cat night, we ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture