It's a first for India as it overtakes China in M&A fees for Western banks in 2022: Report
Foreign banks have earned $231 mn in mergers and acquisitions fees from India so far this year, according to Dealogic, beating the $204 mn earned in China over the same period
- Dec 20, 2022,
- Updated Dec 20, 2022 4:53 PM IST
In a historic first, the world’s largest investment banks will earn more dealmaking fees in India in 2022 than in China, reported Financial Times on Tuesday.
Foreign banks have earned $231 million in mergers and acquisitions fees from India so far this year, according to Dealogic, beating the $204 million earned in China over the same period, reported FT.
JPMorgan is among the largest investment banks that will earn more from M&A in India than in China this year for the first time, the report said citing two people with knowledge of the bank’s position.
China's abrupt end to its zero-Covid policy has raised concerns of widespread infections among a vulnerable, undervaccinated population with little natural immunity. However, deal activity is likely to be spurred in China with zero-Covid policy in the back burner even as the FT report said Chinese companies may turn to domestic banks for advisory work in the future.
Jan Metzger, head of banking, capital markets and advisory for Citi in Asia, told the UK newspaper: “The evolution of the banking wallet there (in India) with the growth in tech, alongside the established Indian corporate titans being more active has made India a leading investment banking market for Citi in 2022."
He added: “We expect that to continue in the years ahead with the pipeline [in India], one of the largest we have.”
At a time when inflation and recession fears gripped most of rest of the world, India has been a relative outlier with big-ticket deals still happening in 2022, a year that saw central banks across the globe going for rate cuts.
M&A activity in India surged 58 per cent year on year to an all-time high of $148bn in the first nine months of 2022, according to a report by data provider Refinitiv, massive chunk of which came from the mega $40-bn merger between HDFC and HDFC Bank.
Meanwhile, November turned out to be the worst month for the deal street with 119 merger and acquisition transactions worth $2.2 billion, a fall of 40 per cent in volume and 37 per cent in value annually, a report said on Monday.
This is in spite of the month seeing the highest number of IPOs (initial public offerings) in the year, and the fourth highest in the past 11 years, according to the data collated by Grant Thornton.
With 21 per cent of M&A (Merger and Acquisitions) volumes, the startup sector continued to dominate the M&A deal activity, said the report, while PE (private equity) activity saw $1.4 billion worth of investments made across 100 deals (second-lowest monthly volumes), down 55 per cent in volume and 32 per cent in value.
With just $2.2 billion across 119 deals, November was the worst month so far this year. This is a 40 per cent plunge in volume and a 37 per cent in value over November 2021.
In a historic first, the world’s largest investment banks will earn more dealmaking fees in India in 2022 than in China, reported Financial Times on Tuesday.
Foreign banks have earned $231 million in mergers and acquisitions fees from India so far this year, according to Dealogic, beating the $204 million earned in China over the same period, reported FT.
JPMorgan is among the largest investment banks that will earn more from M&A in India than in China this year for the first time, the report said citing two people with knowledge of the bank’s position.
China's abrupt end to its zero-Covid policy has raised concerns of widespread infections among a vulnerable, undervaccinated population with little natural immunity. However, deal activity is likely to be spurred in China with zero-Covid policy in the back burner even as the FT report said Chinese companies may turn to domestic banks for advisory work in the future.
Jan Metzger, head of banking, capital markets and advisory for Citi in Asia, told the UK newspaper: “The evolution of the banking wallet there (in India) with the growth in tech, alongside the established Indian corporate titans being more active has made India a leading investment banking market for Citi in 2022."
He added: “We expect that to continue in the years ahead with the pipeline [in India], one of the largest we have.”
At a time when inflation and recession fears gripped most of rest of the world, India has been a relative outlier with big-ticket deals still happening in 2022, a year that saw central banks across the globe going for rate cuts.
M&A activity in India surged 58 per cent year on year to an all-time high of $148bn in the first nine months of 2022, according to a report by data provider Refinitiv, massive chunk of which came from the mega $40-bn merger between HDFC and HDFC Bank.
Meanwhile, November turned out to be the worst month for the deal street with 119 merger and acquisition transactions worth $2.2 billion, a fall of 40 per cent in volume and 37 per cent in value annually, a report said on Monday.
This is in spite of the month seeing the highest number of IPOs (initial public offerings) in the year, and the fourth highest in the past 11 years, according to the data collated by Grant Thornton.
With 21 per cent of M&A (Merger and Acquisitions) volumes, the startup sector continued to dominate the M&A deal activity, said the report, while PE (private equity) activity saw $1.4 billion worth of investments made across 100 deals (second-lowest monthly volumes), down 55 per cent in volume and 32 per cent in value.
With just $2.2 billion across 119 deals, November was the worst month so far this year. This is a 40 per cent plunge in volume and a 37 per cent in value over November 2021.