Value of mergers and acquisitions at lowest level in at least 76 months

The value of mergers and acquisitions (M&A) in April was the lowest since at least 2018.

With 98 deals, the total value of M&A stood at $1.8 billion. In the same month last year, the value was $8 billion across 204 deals. The highest since 2018 was $70 billion in April 2022 over 194 deals, according to data from LSEG Deals Intelligence (see chart 1).

In the first four months of the year, the value of Indian M&As declined by 33.6 per cent to $20.6 billion, compared to $31.1 billion in the corresponding period of 2019. Globally, the decline was 16.8 per cent.

India's share in global M&As was 1.9 per cent in 2023, compared to 2.4 per cent in 2019. It was 7.2 per cent in 2022, the highest since 2018.

M&As hit a ten-year low in 2023, according to an April 2024 update by the Organisation for Economic Co-operation and Development (OECD), due to "geopolitical tensions, continued high core inflation rates, tighter financial conditions, and reduced economic prospects."

Across sectors, the deal value for telecommunications increased significantly from $0.4 billion in 2019 to $4 billion in 2024, capturing 19.2 per cent of the market. Next were media and entertainment (18.6 per cent), industrials (16.7 per cent), financials (13.3 per cent), and materials (7.2 per cent).

Financials, which led in 2019, saw a decline in acquisition value from $11.1 billion to $2.8 billion. High technology, energy and power, retail, and consumer products and services also experienced a decline (see chart 2).

Globally, the share of high technology was the highest at 15.1 per cent, followed by energy and power (14.6 per cent), financials (13.3 per cent), materials (12 per cent), and healthcare (11 per cent).

Deal values involving private equity funds touched $591 million in April. While monthly numbers have been volatile, the broader trend indicates a decline in activity. Private equity players' deal value on a rolling 12-month basis was $10.2 billion in April, the lowest in 28 months.