This year, India saw a good number of mergers and acquistions (M&A) across various business verticals. Right from banking sector, pharmacy, automobiles, to media – there is hardly any sector which has remained untouched from M&A in India.
Some major factors behind such a surge in merger and acquisition process are:
* Business-friendly rules and regulations by the ruling authorities
* Ease in transfer of technology
* New combination of merger and acquisitions
It is difficult to conduct agressive M&As if the rules and regulations of the involved countries is not simplified enough for smooth functioning of acquiring or merging with the company.
Secondly it is usually seen that many companies require technology to prepare products and services of a special type, which most of the times they do not have access to. Mergers and acquistions help in technology transfer and thereby boost the growth of both the corporations involved.
Another major reason for such an increase in the numebr of M&As is the emergence of a new product mix in the market. For eg. There are several companieswho do not find it profitable to manufacture products themselves. In such cases they merge with companies which can give them the right to sell as well as diversify the product.
These are the main reasons why the year 2015 in particular has seen a rise in the number of mergers and acquitions in India. Among the long list of corporations which were agressively involved in M&As, the Citi Bank Group tops the list with a share of 16.5% in the total mergers and acquisitions in India. Credit Sussie, Axis Bank, JP Morgan, Morgan Stanley are among the other top names who have seen a substantial amount of M&As.
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