Indian companies have been involved in deals worth a record $97.6 billion this year and JP Morgan Chase is predicting more offshore interest in the nation, particularly in technology, media and telecom.
Walmart’s $16bn acquisition of a majority stake in Indian e-commerce company Flipkart - a deal JP Morgan advised on - has been the biggest so far, pushing the total past a previous annual peak of $92.3bn, according to data compiled by Bloomberg. India’s bankruptcy process has also spurred activity with more than $26bn in distressed steel assets coming on the block, while a price war in telecom forced consolidation.
“This year, if there is one stand-out product it is really M&A,” said Kalpana Morparia, the chief executive for South and South East Asia at JP Morgan. “We are seeing some great examples of inbound M&A and a fair amount of domestic consolidation, largely spurred by the bankruptcy process.”
Overseas buyers from Walmart to France’s Schneider Electric have made multibillion-dollar bets in India to tap into the promise of rising consumption by an increasingly interconnected middle class. The nation’s focus on improving infrastructure and cleaning up $210bn of soured loans in the banking system has also helped investors brush aside concerns about the economic fall out of a global trade war and rising crude-oil prices.
Already there are more billion-dollar deals being weighed, as UK pharmaceutical giant GlaxoSmithKline examines selling its stake in its local consumer health subsidiary, worth about $3.1bn, and Kraft Heinz considers the sale of its children’s milk drink brand Complan in India, which may fetch about $1bn.
Technology, media and telecom along with financial services will probably remain the most active sectors for inbound deal-making this year and next, Ms Morparia said.
“Both play on the core macro and micro themes around consumption and digitization of India and we are still at early stages of evolution of these themes,” she said. “The power of data will play a critical role for India in the next two-to-five years.”
JP Morgan headed the league table with a 42 per cent share of deals struck, climbing from 10th place in 2017. It was followed by Goldman Sachs and Citigroup, while Arpwood Capital was the highest-ranked local banker in 10th position.
The role played by financial sponsors such as private equity firms and pension funds in the Indian deal space is increasing - both in terms of selling some investments as well as tying up with local companies to bid for assets on sale through the bankruptcy process. These are not just traditional private-equity funds, which have been in India for the last 20 years, but include longer-term pension funds, said Ms Morparia, who is the senior-most woman banker in South Asia with more than 43 years of experience in the sector.
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Read more:
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Investments by private equity and venture capital funds rose by nearly 50 per cent to $15.2bn in the first half of this year, compared to $10.4bn in the same period last year, according to an EY report. The number of higher-value deals is also rising with 36 transactions above $100 million, against 20 deals in the year-ago period, the report showed.
The two largest overseas acquisitions by Indian companies for the year were announced earlier this month. India’s UPL has said it will acquire Arysta LifeScience from Platform Specialty Products for about $4.2bn in an all-cash deal, making it the largest outbound deal for the year so far. Hindalco Industries, controlled by billionaire owner Kumar Mangalam Birla, agreed last week to acquire US aluminium producer Aleris for about $2.6bn.
Ms Morparia also shared her views on bond sales and the impact of a trade war:
Advice to clients looking at overseas bond sales?
We are telling clients looking at debt issuance to keep on watching the market in case we find a sudden window. One should be in a constant state of readiness.
Going by my experience, I have not seen the markets being illiquid or not open for a period of time. I am sure it will open up and, if not, people will make a call on whether it is wise to go ahead with 20-30 basis point wider margins.
How will trade tensions impact Asia?
We are reacting to the trade war based on some announcements made by the US, while the rest of the world has extreme and great interest in trying to sign unilateral or multilateral deals among themselves. For instance, Europe is not saying that they don’t want to deal with Asia. I don’t see this impacting our business.
I see business picking up due to intra-Asia trade. With a relative cooling off of tensions in North Korea, if you look at Apac countries - whether it is Japan, Korea, Indonesia, China, India, Vietnam - there are plenty of opportunities for a two-way flow of trade.
MATCH INFO
Manchester City 4 (Gundogan 8' (P), Bernardo Silva 19', Jesus 72', 75')
Fulham 0
Red cards: Tim Ream (Fulham)
Man of the Match: Gabriel Jesus (Manchester City)
DEADPOOL & WOLVERINE
Starring: Ryan Reynolds, Hugh Jackman, Emma Corrin
Director: Shawn Levy
Rating: 3/5
COMPANY PROFILE
Name: Xpanceo
Started: 2018
Founders: Roman Axelrod, Valentyn Volkov
Based: Dubai, UAE
Industry: Smart contact lenses, augmented/virtual reality
Funding: $40 million
Investor: Opportunity Venture (Asia)
The biog
From: Upper Egypt
Age: 78
Family: a daughter in Egypt; a son in Dubai and his wife, Nabila
Favourite Abu Dhabi activity: walking near to Emirates Palace
Favourite building in Abu Dhabi: Emirates Palace
ROUTE TO TITLE
Round 1: Beat Leolia Jeanjean 6-1, 6-2
Round 2: Beat Naomi Osaka 7-6, 1-6, 7-5
Round 3: Beat Marie Bouzkova 6-4, 6-2
Round 4: Beat Anastasia Potapova 6-0, 6-0
Quarter-final: Beat Marketa Vondrousova 6-0, 6-2
Semi-final: Beat Coco Gauff 6-2, 6-4
Final: Beat Jasmine Paolini 6-2, 6-2
Tomb Raider I–III Remastered
Developer: Aspyr
Publisher: Aspyr
Console: Nintendo Switch, PlayStation 4&5, PC and Xbox series X/S
Rating: 3/5
Islamic Architecture: A World History
Author: Eric Broug
Publisher: Thames & Hudson
Pages: 336
Available: September
WWE Evolution results
- Trish Stratus and Lita beat Alicia Fox and Mickie James in a tag match
- Nia Jax won a battle royal, eliminating Ember Moon last to win
- Toni Storm beat Io Shirai to win the Mae Young Classic
- Natalya, Sasha Banks and Bayley beat The Riott Squad in a six-woman tag match
- Shayna Baszler won the NXT Women’s title by defeating Kairi Sane
- Becky Lynch retained the SmackDown Women’s Championship against Charlotte Flair in a Last Woman Standing match
- Ronda Rousey retained the Raw Women’s title by beating Nikki Bella
The specs
Engine: 6-cylinder, 4.8-litre
Transmission: 5-speed automatic and manual
Power: 280 brake horsepower
Torque: 451Nm
Price: from Dh153,00
On sale: now
Living in...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
Fixtures
Opening day Premier League fixtures for August 9-11
August 9
Liverpool v Norwich 11pm
August 10
West Ham v Man City 3.30pm
Bournemouth v Sheffield Utd 6pm
Burnley v Southampton 6pm
C Palace v Everton 6pm
Leicester v Wolves 6pm
Watford v Brighton 6pm
Tottenham v Aston Villa 8.30pm
August 11
Newcastle v Arsenal 5pm
Man United v Chelsea 7.30pm
Uefa Nations League: How it works
The Uefa Nations League, introduced last year, has reached its final stage, to be played over five days in northern Portugal. The format of its closing tournament is compact, spread over two semi-finals, with the first, Portugal versus Switzerland in Porto on Wednesday evening, and the second, England against the Netherlands, in Guimaraes, on Thursday.
The winners of each semi will then meet at Porto’s Dragao stadium on Sunday, with the losing semi-finalists contesting a third-place play-off in Guimaraes earlier that day.
Qualifying for the final stage was via League A of the inaugural Nations League, in which the top 12 European countries according to Uefa's co-efficient seeding system were divided into four groups, the teams playing each other twice between September and November. Portugal, who finished above Italy and Poland, successfully bid to host the finals.
Frida
Director: Carla Gutierrez
Starring: Frida Kahlo
Rating: 4/5
The five pillars of Islam
Getting there and where to stay
Fly with Etihad Airways from Abu Dhabi to New York’s JFK. There's 11 flights a week and economy fares start at around Dh5,000.
Stay at The Mark Hotel on the city’s Upper East Side. Overnight stays start from $1395 per night.
Visit NYC Go, the official destination resource for New York City for all the latest events, activites and openings.
Sarfira
Director: Sudha Kongara Prasad
Starring: Akshay Kumar, Radhika Madan, Paresh Rawal
Rating: 2/5
Fixtures
Wednesday, April 3
Arsenal v Luton Town, 10.30pm (UAE)
Manchester City v Aston Villa, 11.15pm (UAE)
Thursday, April 4
Liverpool v Sheffield United, 10.30pm (UAE)
Jeff Buckley: From Hallelujah To The Last Goodbye
By Dave Lory with Jim Irvin
The specs
Engine: 3.8-litre twin-turbo V8
Power: 611bhp
Torque: 620Nm
Transmission: seven-speed automatic
Price: upon application
On sale: now
Dhadak
Director: Shashank Khaitan
Starring: Janhvi Kapoor, Ishaan Khattar, Ashutosh Rana
Stars: 3
THE BIO
Favourite book: ‘Purpose Driven Life’ by Rick Warren
Favourite travel destination: Switzerland
Hobbies: Travelling and following motivational speeches and speakers
Favourite place in UAE: Dubai Museum
Defending champions
World Series: South Africa
Women’s World Series: Australia
Gulf Men’s League: Dubai Exiles
Gulf Men’s Social: Mediclinic Barrelhouse Warriors
Gulf Vets: Jebel Ali Dragons Veterans
Gulf Women: Dubai Sports City Eagles
Gulf Under 19: British School Al Khubairat
Gulf Under 19 Girls: Dubai Exiles
UAE National Schools: Al Safa School
International Invitational: Speranza 22
International Vets: Joining Jack
Match info:
Manchester City 2
Sterling (8'), Walker (52')
Newcastle United 1
Yedlin (30')
Apple product price list
iPad Pro
11" - $799 (64GB)
12.9" - $999 (64GB)
MacBook Air
$1,199
Mac Mini
$799