India's M&A landscape to see positive trends, says EY

NEW DELHI: The value of M&As involving Indian companies, climbed to $22.6 billion in last fiscal and the deal-making landscape is expected to positive trends in the coming months, says consultancy EY.

A stable government as well as the new companies law, that provides for a more transparent environment for carrying out deals, are also anticipated to positively impact merger and acquisition activities, EY said in a report.

According to the report, Indian M&A market registered an aggregate disclosed deal value of $22.6 billion in FY 14. The amount is 12 per cent higher than $20.1 billion registered in the previous fiscal.

"The number of M&A transactions involving Indian companies was relatively muted in FY 14, which stood at 674, down by 20 per cent against 843 deals seen in FY 13," it said.

There were as many as 293 cross-border transactions with an aggregate disclosed deal value of $17.8 billion.

"India's deal landscape is expected to be positively influenced by a stable government, boosting confidence among domestic as well as global participants, who are now pinning hopes on the government's focus to improve infrastructure and revive economic growth.

"This will act a major driver for the country's M&A activity in the coming year," the report said.

Further, the new Companies Act provides for a smoother and more transparent environment for conducting M&A deals.

Noting that last fiscal year was an encouraging year for the global business environment, EY's Amit Khandelwal said a similar sentiment was witnessed across the Indian M&A market.

"The country continues to be a major attraction for global players, as evinced by their continuing interest in the country's growth story.

"We remain optimistic about the M&A outlook as it continues to stabilise over the next year," Khandelwal, who is National Director and Partner, Transaction Advisory Services, at EY said.