# India takes the crown Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2017-12-02 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: India's M&A Boom Challenges China Meta Description: Discover how India is challenging China for the title of M&A capital in Asia, with US buyers driving the boom in financial services, software, and URL: https://financedigest.com/india-takes-the-crownhtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/fd021217-4-1736843187179-compressed.jpg) - _India rivals China as centre for M&A in Asia_ - _Number of deals for Indian firms overtakes its larger neighbour_ - _Keen interest from US buyers driving activity_ - _Financial services, software and ecommerce account for [lion’s share](https://www.financedigest.com/north-american-market-for-veterinary-respiratory-ventilators-to-hold-lions-share-owing-to-presence-of-major-key-players-fact-mr-report.html "North American Market for Veterinary Respiratory Ventilators to Hold Lion’s Share Owing to Presence of Major Key Players: Fact.MR Report") of deals._ India’s mergers and acquisitions boom has seen it challenge China for the title of the M&A capital of emerging markets, according to analysis by M&A and debt advisory specialists [Livingstone](http://livingstonepartners.com/uk/) **.** The first [half of the year](https://www.financedigest.com/tods-sales-rise-17-in-first-half-of-year.html "Tod’s sales rise 17% in first half of year") saw 109 M&A deals in which the target had a presence in India, just two fewer than in China, which has dominated M&A in recent years. When only the main domicile of the companies is considered, India has already overtaken its larger neighbour. India was also responsible for far the biggest deal of the period: Vodafone India’s $10.25 billion merger with Idea Cellular, which is [expected to be completed in the first quarter of next year](https://www.financedigest.com/german-engineering-firms-expect-hit-from-supply-chain-bottlenecks-next-year.html "German engineering firms expect hit from supply chain bottlenecks next year"). [Activity in the country is driven by domestic companies but is also combined with particularly strong](https://www.financedigest.com/euro-zone-april-business-activity-grows-on-strong-services-demand-pmi.html "Euro zone April business activity grows on strong services demand – PMI") international interest. In contrast to China, where well over half of buyers were from the mainland or [Hong Kong](https://www.financedigest.com/evergrande-winding-up-lawsuit-in-hong-kong-adjourned-to-nov-7.html "Evergrande winding-up lawsuit in Hong Kong adjourned to Nov 7"), two-thirds of deals in the first half in India were the result of overseas interest. North American buyers, led by the US, were most active, [accounting for more than half](https://www.financedigest.com/building-and-construction-to-continue-accounting-for-nearly-half-of-tower-cranes-sales-globally-fmi.html "Building and Construction to Continue Accounting for Nearly Half of Tower Cranes Sales Globally: FMI") of inbound M&A – 40 deals in total (33 from the US and seven from Canada). Buyers also came from France, the UK, China, Singapore, Japan and a host of other nations. “Despite the [regulatory challenges](https://www.financedigest.com/big-bank-ceos-to-sell-lawmakers-on-relief-diversity-efforts-amid-economic-regulatory-challenges.html "Big bank CEOs to sell lawmakers on relief, diversity efforts amid economic, regulatory challenges") that remain, India is a rising star for international buyers,” said Livingstone Partner Jeremey Furniss. “M&A and international interest in the country is booming.” **A triumph of technology** Overall, business [services saw the greatest number of deals in the period (44), boosted by strong interest in the financial services sector](https://www.financedigest.com/why-the-financial-services-sector-could-thrive-in-the-subscription-economy.html "Why the Financial Services sector could thrive in the subscription economy"), with 12 deals, most of them with international buyers. Technology was also strong, with a dozen deals each involving [computer software firms and businesses focused on the internet](https://www.financedigest.com/we-researched-dfinitys-internet-computer-and-this-is-what-we-learned.html "We Researched Dfinity’s Internet Computer and This Is What We Learned") and ecommerce – the majority, again, driven by international acquisitions. After the Vodafone deal, tech giant Microsoft’s $1.13 [billion investment](https://www.financedigest.com/samsung-elec-breaks-ground-on-new-chip-rd-centre-plans-15-billion-investment-by-2028.html "Samsung Elec breaks ground on new chip R&D centre, plans billion investment by 2028") in Flipkart, India’s biggest ecommerce marketplace, was the largest deal reported in the six months covered. Strength in [India contrasts with China](https://www.financedigest.com/apple-plans-to-cut-iphone-14-production-lag-between-china-india-bloomberg.html "Apple plans to cut iPhone 14 production lag between China, India – Bloomberg"), which has seen a big slow down in M&A in the last year. Despite [strong growth](https://www.financedigest.com/lego-posts-strong-growth-on-robust-demand-new-store-openings.html "Lego posts strong growth on robust demand, new store openings") continuing to surprise forecasters, Chinese government efforts to rebalance the country’s economy away from heavy industry have had impact an M&A in the country. Nevertheless, [China continues to attract international buyers from both the US and Europe](https://www.financedigest.com/unilever-downbeat-on-europe-china-consumer-sentiment.html "Unilever downbeat on Europe, China consumer sentiment"), and is also strong in technology: Between them, internet and ecommerce businesses and software firms accounted for more than a fifth of all M&A in China in the first six months, with half the deals involving international bidders. “The expected slowdown in China is likely to benefit Indian businesses looking to sell, but the country will remain a key territory for acquisitive businesses looking for [opportunities in the big emerging](https://www.financedigest.com/surgical-masks-market-emerging-trends-and-will-generate-new-growth-opportunities-status-2030.html "Surgical Masks Market: Emerging Trends and Will Generate New Growth Opportunities Status 2030") markets,” said Jeremey Furniss. “The [region as a whole continues to offer exciting prospects](https://www.financedigest.com/flooded-lead-acid-battery-regional-landscape-production-sales-consumption-status-and-prospects.html "Flooded Lead Acid Battery Regional Landscape, Production, Sales & Consumption Status and Prospects") for overseas buyers.” --- This blog is powered by Superblog. 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