homebusiness NewsMergers and acquisitions clock majority deals in 2022, with private equity in second spot

Mergers and acquisitions clock majority deals in 2022, with private equity in second spot

In terms of sector break-up, the top five in mergers and acquisitions were from banks and financial services topping the chart followed by manufacturing, IT, renewable energy and logistics.

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By Nisha Poddar  Dec 16, 2022 2:15:28 PM IST (Published)

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As the year draws to a close, deals worth $118 billion have been clocked — a majority from mergers and acquisitions. Private equity participated with $33 billion. In terms of sector break-up, the top five in mergers and acquisitions, were from banks and financial services topping the chart followed by manufacturing, IT, renewable energy and logistics. Private equity investments were highest in e-commerce, followed by other sectors like media, infra, energy and financial services. 

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YTD 2022Deal ValueNo. of deals
Mergers &Acquisitions$85.6 billion417
Private Equity$33.3 billion1,431
Total$118.9 billion1,848

Mergers & Acquisitions                                                                                                                    
Sector break-up- YTD 2022No. of dealsDeal Value 
Banking and financial services12$41.87 billion
Energy and natural resources14$4.19 billion
IT & ITeS72$19.37 billion
Manufacturing17$10.91 billion
Transport and logistics9$2.79 billion
Private Equity
Sector break-up- YTD 2022No. of dealsDeal Value
Banking and financial services28$2.69 billion
E-commerce159$6.06 billion
Energy and natural resources13$2.27 billion
Infrastructure management9$2.67 billion
Media and entertainment19$2,83 billion
Speaking of the top deals of the year, the HDFC-HDFC bank merger was the largest, boosting the overall deal value for the year. The battle between Holcim’s cement assets, Ambuja, ACC and the Adani group was the most hotly contested, won by the Adani group. Biocon’s acquisition of Viatris’ biosimilar business is path-breaking in overseas deals by an Indian company. Fourth on the list is the global steel giant Arcelor Mittal’s acquisition of Essar group’s port and power assets, critical to its steel assets which mark the full completion of Essar steel buyout via the IBC process, which has been a very long-drawn deal, finally coming to an end. And last is the Yes bank equity deal by private equity firms Carlyle and Advent, which is an important milestone in Yes bank’s bail-out plan.
DEALS 2022 
Start-upsNo. of dealsDeal Value
YTD 2021937$10.05 billion
YTD 2022918$6.98
For the year ahead, most deal makers are cautiously optimistic about deal activity, consolidation could be a big theme playing out as economic pressures weigh on weaker companies, and startup funding winter is here, expected to intensify further. With valuations volatile, deal closure could be a challenge while private equity braces up for some value buying next year.

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