Singapore secures 17 M&A deals in India

The Dollar Business Bureau

Indian and Singaporean companies have signed as many as 17 merger and acquisition (M&A) agreements with a total investment of $940 million in the first half of this year.

The companies from the two nations have signed 17 deals. “Almost all of them were transactions where the acquirer is from Singapore and the target from India,” said Srividya Gopalakrishnan, Managing Director, Duff & Phelps.

Among the signed deals were Government Investment Corporation’s (GIC) acquisition of stakes in Bandhan Bank, Greenko Energy and Viviana Mall as well as Singapore Technologies Telemedia’s acquisition of stakes in Tata Communications Data Centre business.

The consultancy said the Malaysian, Indonesian and Indian enterprises signed four M&A of $95 million.

The report titled “Transaction Trail” said the four M&As included Malaysia’s Tenaga Nasional Berhad (TNB) acquiring 30% stake in GMR Energy Ltd. for $300 million.

“Some of the above stake acquisitions are by investment funds. As any other investor, their drive is to make good return on their investments,” Gopalakrishnan said.

“India has been a key destination for inbound M&As (foreign companies acquiring Indian businesses) over the years across different segments,” noted she.

Indian recent economic growth has a lot depended on its local consumption of goods, which attracts investors from across the globe. The government has also of late focused on offering benefits from domestic export-oriented companies, which goes beyond manufacturing and technological setups.

“International companies have managed to successfully make acquisitions or enter into joint ventures in India. M&A has been one of the ways in which they have expanded their India footprint. “Many companies have realised that M&A is not something exotic, but it is a strategy relevant for their day-to-day business,” highlighted Gopalakrishnan.

Foreign companies have been betting big on India in the backdrop of a gloomy global economic growth, especially in the mature market, and fallen and unstable oil prices.

“This also helps companies internationalise their businesses, add on service offerings, leverage on global capabilities and mitigate their own shortcomings,” she said.