 "India leads Asia-Pacific region's M&A deals in Q1 2024: S&P Global")
India bucked the trend, showing the best numbers in terms of merger and acquisition deals in the Asia-Pacific region in the first quarter (Q1) of 2024 in the financial sector, with 27 deals closed, compared to 13 in Japan, 12 in Australia, 11 in South Korea, and only nine in Mainland China, according to S&P Global Market Intelligence.
The number of deals closed in Q1 of 2024 is one more than the previous year. For all other countries, the number of deals fell or remained stagnant.
Deal volumes in Q1 2024 fell by 14 per cent year-on-year, ending March 31, 2024, dragged by declines in Mainland China and Australia.
Economic uncertainties, higher funding costs, and increased volatility due to geopolitical risks are among the reasons for the slowdown.
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The report says that the bright spot was India, and given the country’s strong forecast and resilience, there is a reasonable expectation for robust deal-making, said AsiaLink Business Chief Executive Officer Leigh Howard.
China saw deal numbers fall to just a mere nine in Q1 2024 compared to 24 the year before. In Australia, deals dropped to 12 in Q1 2024 from 26 a year ago.
Four of the top 10 deals in value were closed in India, with a combined deal value of $845.79 million. The biggest of them all was Sumitomo Mitsui Financial Group’s (SMFG’s) acquisition of SMFG India Credit, a specialty finance company, for $700 million.
The others include Piramal’s acquisition of Annapurna Finance, Rajiv Rattan’s purchase of a stake from Lonestar Americas in RattanIndia Finance, and Muthoot Finance’s investment in Belstar Microfinance.