M&A deals so far this year are the lowest in five years

Ahmedabad: In the first 9 months of the calendar year 2023, the value of merger and acquisition deals in the country has decreased by 69.1 percent to 50.8 billion dollars compared to the same period last year. Amid rising interest rates and geopolitical turmoil around the world, weakening investor sentiment has dampened merger-acquisition deals. According to Bloomberg data, this value of acquisition deals is the lowest in the last 5 years.

The Canada Pension Plan Investment Board's $4.03 billion purchase of additional shares in Renew Power is the biggest deal so far this year, according to Bloomberg data. Bankers say global private equity firms have $3-4 trillion of investable funds.

These companies have $10 to 15 thousand crores for India and are looking for better investment opportunities in technology, renewable energy and infrastructure sectors. Some of the biggest deals this year could include Cipla's promoters selling a stake in the company, which could be worth around $7 billion.

Bankers said investors have sold more shares of listed companies this year than ever before and the momentum may continue in the future. In the last 3 to 5 years, the share of institutional investors in many listed companies has been high and share sales are proving to be a better deal for investors, which has also increased the confidence of investors to do more deals.