Introduction:
Mergers and acquisitions (M&A) are pivotal strategies in the corporate world. They allow companies to achieve growth, expand into new markets, and acquire new technologies. Despite several developed economies facing slowdowns, the Indian companies performed exceedingly well during the last financial year 2023-24. This positive outlook is evident in India’s M&A market as well.
Several promising companies, belonging to sectors such as energy, infrastructure, manufacturing, and logistics, undertook M&A activities in 2023-24. This blog post offers a comprehensive look at some of the notable mergers and acquisitions in India in 2024. Keep reading.
Top mergers and acquisitions in India in 2024
Below are the notable mergers and acquisitions in India in the Financial Year 2023-24:
1. Future Group and Reliance Industries
Reliance Industries Limited (RIL), one of India's largest conglomerates, completed its acquisition of Future Group’s retail, wholesale, logistics, and warehousing businesses. This acquisition is valued at approximately $3.4 billion and is aimed at strengthening RIL’s retail arm, Reliance Retail, which is already the largest retail player in India. The deal is expected to significantly enhance Reliance Retail’s footprint across the country.
2. Tesla and Tata Motors
In a groundbreaking move, Tata Motors announced a strategic partnership and partial acquisition by Tesla Inc. Tesla acquired a 20% stake in Tata Motors’ electric vehicle (EV) division for $2 billion. This partnership is expected to bolster Tata Motors’ EV capabilities and accelerate the adoption of electric vehicles in India. The collaboration will also see the introduction of Tesla’s advanced battery technology and autonomous driving features in Tata’s EV lineup.
3. Tata Group and Air India
Tata Group acquired Air India for $2.4 billion (Rs.18,000 crores), with Rs. 2,700 crore paid upfront and Rs. 15,300 crore in debt assumed by Tata Sons. Additionally, Tata Group announced a merger between Air India and Vistara, in which Singapore Airlines, holding 49% of Vistara's equity, will receive a 25.1% stake in the merged entity.
4. Adani Group and NDTV
Adani Group, which already held a 29.18% equity stake in NDTV through an indirect subsidiary (RRPR), acquired an additional 27.26% stake owned by NDTV's founders. This acquisition was made at a price of Rs. 342.65 per share, resulting in a total transaction value of approximately Rs. 602.30 crore.
5. Zomato and Blinkit
Online food and grocery delivery companies Zomato and Blinkit have agreed to a merger in an all-stock deal valuing between $700 million and $750 million. Blinkit, formerly known as Grofers, has recently rebranded to focus on instant grocery delivery. Upon successful acquisition, Zomato’s shares have surged considerably, providing 169% returns in the trailing year.
6. Kotak Mahindra and Sonata Finance
In October 2023, Kotak Mahindra Bank received approval from the Reserve Bank of India (RBI) to acquire Sonata Finance for Rs. 537 crores. This acquisition represents a strategic move by the Kotak Mahindra Bank into the non-banking financial sector (NBFC) space. Sonata Finance specialises in providing microfinance services, offering small loans to underserved segments such as low-income individuals and small businesses, particularly in rural and semi-urban areas.
7. Brookfield Asset Management and Rostrum Realty
In May 2023, Brookfield Asset Management – a leading global asset management company – announced the purchase of a 51% controlling interest in Rostrum Realty Pvt Ltd for an enterprise value of Rs. 5,000 crores. Rostrum Realty is a joint venture in real estate between Brookfield and Sunil Mittal’s Bharti Enterprises. The strategic acquisition enhances Brookfield’s position in the Indian real estate sector, enabling them to capitalise on their expertise in managing prominent properties.
8. IDFC First Bank and IDFC Limited
In July 2023, two prominent financial institutions in India – IDFC First Bank and IDFC Limited – merged at an agreed share exchange ratio of 155 equity shares of IDFC First Bank to 100 equity shares of IDFC Limited. The merger aims to streamline operations, rationalise corporate structures, and strengthen regulatory compliance for the combined entity.
To conclude
The mergers and acquisitions in India in 2024 highlight the country’s robust economic landscape and the strategic maneuvers of its leading companies. These deals are expected to drive growth, innovation, and competitiveness across various sectors, reinforcing India’s position as a key player in the global economy. As these companies integrate and optimize their operations, they will likely unlock new opportunities and create value for their stakeholders, contributing to India’s continued economic progress. As an investor, you can take note of these developments and make well-informed investment decisions.
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