Reforms likely to boost M&As in India: Ernst & Young

NEW DELHI: After a lull in corporate activity over the past few months, policy reforms in sectors like retail and aviation are expected to lead to a strong surge in mergers and acquisitions in the country, according to consultancy firm Ernst & Young.

""The recent flurry of policy reforms announced by the government of India should boost investor sentiment and consequently M&A activity in the coming quarters," said Amit Khandelwal, partner and national director (transactions advisory services) at Ernst & Young.

The gloomy economic environment in the past few months at the domestic and global level affected M&A activity in India with several cash rich companies playing the waiting game.

The number of deals in the July-September quarter this year stood at 161, a 20.3% reduction from 202 deals in the corresponding period last year, according to data from Ernst & Young.

In terms of value, there was a 50% decline. M&A deals were worth $3.4 billion in the July-September quarter, while it stood at $6.9 billion in the comparable period last year.

Experts tracking the M&A sector have said the economic situation in India is ripe for investments. For private equity firms too, policy reforms, especially in multi-brand and single-brand retail, are expected to throw up opportunities.