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Reliance-Disney merger drives spike in M&A deals in 2024

Reliance Industries signed a binding agreement with Disney to form a $8.5 billion joint venture, combining the businesses of Viacom 18 and Walt Disney's India business

Reliance-Disney merger drives spike in M&A deals in 2024
[Source photo: Chetan Jha/Press Insider]

India saw merger and acquisition deals worth $19.6 billion in January to March quarter in 2024, registering a 60% rise in deal value compared to the previous quarter, a PwC India report said. 

“The media and entertainment sector tops the charts in terms of value, while the retail and consumer sector continues to lead in terms of the deal volume,” the report said.

Private equity (PE) deal value, however, experienced a slight dip, coming down from $7 billion to $6.1 billion this quarter. 

The overall total deal value for 455 deals in Jan-March 2024 (Q1 CY24) stands at $25.6 billion33% higher than Oct-Dec 2023 (Q4 CY23). 

This is also 30% higher than that in Q1 CY23.

“Q1 CY24 showcases the best figures in the last six quarters owing to the momentum of the market and large-ticket deals. This hints at a bold appetite for strategic expansion and market dominance,” Dinesh Arora, partner and leader deals, PwC India said.

“The Indian economy stands as a beacon of resilience, boasting a robust gross domestic product (GDP) growth rate of 8.4% in Q3 of FY24, fueled by increased investments. Despite challenges such as sluggish private consumption and investment, as well as tempered export growth, the overall outlook remains positive,” Arora added.

There were a total 143 domestic M&A deals with the largest one touching $4.5 billion.

The largest deal of the quarter comes from the media and entertainment sector, where Reliance Industries signed a binding agreement with Disney to form a $8.5 billion joint venture, combining the businesses of Viacom 18 and Walt Disney’s India business.

Post completion of the formalities, the JV will be controlled by RIL and owned 16.34% by RIL, 46.82% by Viacom18, and 36.84% by Disney.

“This will create a media behemoth across TV broadcasting, streaming, movies and sports,” the report said.

The study shows that total deal value exhibits a significant rise this quarter. This was led by M&A deals, where deal value soared from $12.2 billion in Oct-Dec 2023 quarter to $19.6 billion in Jan-March 2024 quarter, marking a 60% increase. 

This quarter recorded 14 deals with value over $500 million, as compared to just nine such deals in Q4 CY23 and out of these, 12 are M&A transactions, the report said.

The average ticket size for M&A deals remained unchanged at $142 million, same as the Q4 CY23, and 42% higher than Q1 CY23. 

While the average ticket size for PE investments saw a decline of 39%, from $44 million in Q4 CY23 to $ 27 million in Q1 CY24. 

“Domestic deals grew by 44% since Q4 CY23, while cross- border deals fell by 10%. With this growth, domestic deals continue to make up the majority with 73% share of the total M&A deals,” the report said.

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