During the period from 2015 to 2019, the merger and acquisition ("M&A") landscape in India demonstrated resilience. However, the year 2022 marked a significant upswing, with India experiencing an unprecedented surge in both the volume and value of strategic M&A deals. This surge stood in contrast to a decline in dealmaking observed in many other parts of the world. In 2022, India witnessed over 20 large transactions, propelling M&A deal values to a historic high of USD 107 billion—an almost twofold increase from the previous year's USD 52 billion.
Notably, one of the most substantial M&A transactions in India's corporate history was the USD 60 billion merger between HDFC and HDFC Bank. This deal surpassed the total value of all transactions in 2021, which amounted to USD 52 billion. The year 2022 saw some of the largest-ever transactions in sectors like cement, aviation, and banking. These transactions were primarily driven by companies seeking to consolidate their positions or venture into new segments.
While the overall deal activity in 2022 was slightly lower than in 2021, it exceeded pre-pandemic levels, indicating a robust M&A environment. The general M&A activity in India is currently approaching an all-time high, with companies engaging in more deals than ever before.
Various sectors played a pivotal role in this M&A surge, with banking and financial services, IT & ITES, fintech, energy, and natural resources leading both in terms of deal volume and value. Additionally, contributions from sectors such as e-commerce, manufacturing, education, and aviation further diversified the M&A landscape. Some of the noteworthy deals included the HDFC-HDFC Bank merger valued at USD 60 billion, Adani Enterprises' acquisition of Ambuja Cements and ACC Cements for USD 10.5 billion, and L&T Infotech's USD 2.2 billion acquisition of Mindtree.
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