Top M&As That Significantly Change the Business Landscape in India

The Indian corporate scene saw a drastic transformation in 2023, fueled by a record-breaking M&A binge. According to Deloitte's statistics, the year saw a whopping 72 percent increase in deal volume compared to 2022. According to Bain & Company, the overall value approached a whopping USD 150 billion. Many factors contributed to this expansion. This increase was attributed by EY to factors such as increased investor confidence, strong corporate cash reserves, and the government's pro-consolidation policies.

These massive mergers transformed sectors, from aviation's historic Tata-Air India reunion to the formation of the cinema powerhouse PVR-INOX. Notably, Deloitte reports a 45 percent increase in M&As in the consumer industry, owing to Reliance Retail's strategic purchases such as Ed-a-Mamma. With the acquisition of Pocket Aces by Saregama, Bain & Company highlights the growing importance of digital content play.

Here is the list of the most noteworthy M&A in 2023: 

1. Adani Enterprises' subsidiary AMG Media Networks acquired a majority stake in IANS 

2. Reliance Retail Ventures acquired majority ownership in Ed-a-Mamma 

3. Acquisition of Sobek Auto India by CarTrade Tech

4. Saregama bought out the bulk of Pocket Aces Pictures

5. Sonata Finance was purchased by Kotak Mahindra

6. Softcell Technologies was sold by HDFC Bank

7. Liberty Global purchased interests in Vodafone

8. Purchase of a share in Hindustan Ports by the National Investment and Infrastructure Fund

9. Inox Leisure and PVR INOX Pictures is the result of a merger

10. Adani Group purchased Ambuja Cements and ACC [$$$$]

1. Adani Enterprises' subsidiary AMG Media Networks acquired a majority stake in IANS 

2. Reliance Retail Ventures acquired majority ownership in Ed-a-Mamma 

In September 2023, Reliance Retail Ventures Ltd (RRVL) signed a joint venture agreement to acquire a 51% investment in Ed-a-Mamma, a kid and maternity-wear business founded by actor Alia Bhatt. The goal of this strategic alliance is to develop the brand into new areas such as personal care, baby furnishings, children's storybooks, and an animated series. [$$$$]

3. Acquisition of Sobek Auto India by CarTrade Tech

CarTrade Tech has entered into a share purchase agreement with Sobek Auto India Private Limited and OLX India BV to acquire a 100% stake in Sobek in July 2023 for 537.43 crore. The deal, as detailed in a regulatory filing, highlights CarTrade Tech's strategic moves in the automobile industry. 

4. Saregama bought out the bulk of Pocket Aces Pictures

Saregama, part of the RP-Sanjiv Goenka Group, bought a 51.8% share in digital entertainment company Pocket Aces Pictures Pvt Ltd for 174 crore in September 2023. The agreement calls for Saregama to acquire an additional 41% ownership in the company within the next 15 months, cementing its position in the digital entertainment industry. [$$$$]

5. Sonata Finance was purchased by Kotak Mahindra

The Reserve Bank of India approved Kotak Mahindra's acquisition of Sonata Finance for 537 crore in October 2023. Sonata Finance will become a completely owned subsidiary of the bank upon conclusion of the transaction, marking a key move in the non-banking finance industry.

6. Softcell Technologies was sold by HDFC Bank

HDFC Bank has agreed to sell its whole 9.95% equity holding in Softcell Technologies Global Private Limited for $9.94 crore. According to The Hindu Business Line, the purchase, which is expected to close by the end of February, is part of HDFC Bank's strategic realignment of its investment portfolio. [$$$$]

7. Liberty Global purchased interests in Vodafone

According to the Economic Times, Liberty Global has invested 1.2 billion euros to acquire 1,355 million shares, or 4.92 percent of the outstanding share capital of UK-based telecoms giant Vodafone Group, on February 14, 2023. Liberty Global has stated that it will not seek board representation and has highlighted its wide investment portfolio in entertainment, technology, and infrastructure.

8. Purchase of a share in Hindustan Ports by the National Investment and Infrastructure Fund

The National Investment and Infrastructure Fund (NIIF) has been granted permission by the Competition Commission of India (CCI) to acquire up to a 25% interest in Hindustan Ports Pvt Ltd (HPPL) in February 2023. The regulatory approval also included the merging of Hindustan Infralog Pvt Ltd (HIPL) and HPPL, indicating a strategic shift in the infrastructure industry. [$$$$]

9. Inox Leisure and PVR INOX Pictures is the result of a merger

PVR Pictures, the major multiplex operator, underwent a big shift in May 2023, when it merged with Inox Leisure and adopted the new name PVR INOX Pictures. Following the closure of several movie screens, the combined firm now operates 361 cinemas and 1,689 screens in 115 locations across India and Sri Lanka.

10. Adani Group purchased Ambuja Cements and ACC

Adani Group purchased controlling shares in both Ambuja Cements and ACC from Holcim in February 2023 for a total of $10.5 billion. This single transaction propelled them to become India's second-largest cement producer. The Group is presently the country's second-largest cement player. Holcim completed the transaction with Adani Group by selling its entire stake in Ambuja Cements at 385 per share and its entire stake in ACC at 2,300 per share. Holcim received $6.4 billion in cash proceeds.