The year 2018 is seeing a lot of big-ticket mergers and acquisitions (M&As) in India by foreign companies. Till September, India has got investments worth $40.5 billion through M&As by foreign companies in the country, a 64.6% increase in deal value from comparative period of 2017, surpassing annual record volume in 2017 ($31.5 billion). Globally, investment received by India from foreign companies this year is the second highest after China. In fact, the Middle Kingdom has got marginally higher investments of $41.6 billion through M&As by foreign companies in the same period.
Some of the notable deals in India by foreign firms this year were Walmart Inc.’s $16-billion acquisition of e-commerce giant Flipkart, Amazon.com Inc. and Samara Capital acquiring stakes in Aditya Birla Group’s retail chain More. In non-retail segment, Schneider Electric SA’s acquired Larsen & Toubro Ltd’s electrical and automation business for $2.1 billion and Warren Buffett’s Berkshire Hathaway decided to invest $300 million in Paytm.
The United States is currently the top acquirer of Indian companies in terms of value and number of announced deals. The United States accounted for 56.1% of India’s inbound M&A activity followed by Canada at number two position with 10.5% share and France at number three slot with 9.3% market share. Overall, according to data from Thomson Reuters India M&A report, the value of announced mergers and acquisitions (M&A) deals involving Indian companies (inbound and outbound) reached $99.7 billion in the first nine months of 2018, surpassing the annual record of $67.4 billion set in 2007, on the back of large ticket transactions.
Shift in MNC’s focus
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