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Inbound M&As flounder as MNCs yet to buy into ’achhe din’ story

By Ishaan Gera

  • 03 Nov 2015

Multinational companies are not ready to buy into the India-is-indispensable-now theory, notwithstanding what their bosses might say while interacting with Prime Minister Narendra Modi during his visits to the developed economies.

For, the inbound merger and acquisition (M&A) activity, a proxy for foreign strategic investors' interest in the country, looks set to hit a five-year low considering the number of deals announced in the first 10 months of the calendar year.

Although a few large-sized transactions mean the aggregate value of deals announced so far this year is more than the whole of 2014, it is still a far cry from $19.2 billion clocked in 2011, according to VCCEdge, the data research platform of VCCircle.

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Even though economic data has been upbeat for the world's fastest-growing large economy, delayed reforms have played a part in the subdued M&A activity. A lot would depend on the government's ability in ensuring ease of doing business and providing clarity on tax reforms.

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To hear from experts what's brewing in the deal space in India, don't miss the VCCircle Mergers and Acquisitions Summit on November 4 in Mumbai. Click here for more details.

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