Firm grip

New Delhi, Dec. 6: Mergers and acquisitions are on the rise in India. The country has recorded the second highest growth in M&As in Asia, next only to Japan, during the first half of this year, according to Merger Market, the global M&A intelligence service provider.

“Sectors that are expected to see a flurry of M&As in the coming months are real estate, consumer products, oil and gas. The government has finally introduced a legislation, which protects foreign investors and thereby ease the path of investment,” said Caspar Hobbs, CEO of Merger Market.

Hobbs said a lot of Indian companies are sitting on cash and looking at acquisition opportunities. “For example, Delphi, the ailing auto components company, has received bids by two Indian auto component makers for parts of its assets.”

The company has launched its Asia-Pacific operations with regional headquarters in Hong Kong and offices in Mumbai and Tokyo among other places.

Merger Market said largest M&As have taken place in Japan, India and China in the first half of this year due to a combination of economic and regulatory factors.

“The first half of 2005 saw a substantial increase of 35 per cent in the total volume of deals announced in the Asia-Pacific region compared with the same period last year. The third quarter has somewhat slowed down, but our research shows that the fourth quarter and 2006 should see robust M&A activity once more, with an increase in deal sizes and new sectors coming on the scene,” Hobbs said.