Outbound mergers and acquisitions roar back in 2025, Pg11

Key Highlights:

• Outbound Mergers and Acquisitions (M&A) from India significantly increased in 2025, accounting for over 25% of total deals, compared to 10% in 2023.
• Indian companies' outbound deal value jumped from $18.8 billion in 2024 to $24.8 billion YTD in 2025.
• Tata Motors acquired Iveco Group NV for $4.5 billion, marking the year's largest outbound deal.
• Adani Ports & Special Economic Zone invested $2 billion in Abbot Point Port Holdings Pte, expanding its global ports network.

Detailed Insights:

• The rise in outbound M&A is driven by opportunities in Europe and the US, where family-owned firms face succession issues and companies are affected by geopolitical shocks.
• Indian companies are strategically scaling up by acquiring new markets, technologies, and products, leveraging valuation arbitrage between local and overseas firms.
• Outbound acquisitions are now driven by strategic necessity, faster time-to-market, and the need for digital transformation, rather than just opportunistic buying.
• Coforge's acquisition of Encora for $2.35 billion exemplifies the trend of acquiring niche global players for digital capabilities and access to technology and talent.
• Lenskart Solutions acquired iireer to focus on the technology behind lens manufacturing, indicating a shift beyond retail.

Key Concepts Involved:

• Mergers and Acquisitions (M&A): The consolidation of companies or assets through various types of financial transactions.
• Valuation Arbitrage: Exploiting differences in the valuation of similar assets in different markets to generate profit.
• Digital Transformation: The integration of digital technology into all areas of a business, fundamentally changing how it operates and delivers value to customers.