Year 2024 remains a year marked by enhanced economic activity and Industry consolidation. This is evident from Global M&A activity. These mergers and acquisitions highlight trends towards industry consolidation, strategic acquisitions for technological advancement, and regulatory challenges in key sectors like automotive, technology, finance, and energy.

• Honda, Nissan, and Mitsubishi: The automotive giants announced plans to merge into a single holding company by August 2026. This move is aimed at consolidating their efforts to compete in the electric vehicle and autonomous driving markets, potentially making them the world’s third-largest automaker.

• Nippon Steel and U.S. Steel: Nippon Steel’s $14.9 billion acquisition of U.S. Steel has been delayed until March 2025 due to regulatory scrutiny in the U.S. This deal has faced significant political opposition over national security concerns but is still anticipated to proceed.

• Capital One and Discover Financial Services: Capital One announced a $35.3 billion all-stock merger with Discover Financial Services, creating a significant entity in the credit card and consumer banking markets, aiming for cost synergies and increased shareholder value.

• Mars and Kellanova: Mars, known for brands like M&M’s and Snickers, has agreed to acquire Kellanova, which includes consumer brands like Cheez-Its and Pop-Tarts, in a deal valued at nearly $30 billion. This acquisition expands Mars’ portfolio in the consumer packaged goods sector.

• JetBlue and Spirit Airlines: Initially, there was a $3.8 billion deal for JetBlue to buy Spirit Airlines, but this was blocked by a judge due to anti-competitive concerns. Consequently, the merger was called off, highlighting the regulatory challenges in the airline industry.

• Sony Pictures Entertainment and Alamo Drafthouse Cinema: Sony Pictures Entertainment acquired Alamo Drafthouse Cinema, a popular dine-in movie theater chain, potentially aiming to integrate unique cinema experiences with content production.

• Jersey Mike’s and Blackstone: The sandwich chain Jersey Mike’s was acquired by Blackstone, a private equity firm, for $8 billion, signaling continued interest in fast-casual dining concepts.

• Banking Sector – Kroger and Albertsons: The U.S. government filed a lawsuit to block the merger of grocery giants Kroger and Albertsons, citing concerns over higher prices due to reduced competition. This indicates ongoing scrutiny of large mergers in the retail sector.

• Technology Sector:
o Synopsys and Ansys: Synopsys announced a $35 billion acquisition of Ansys, aiming to enhance its capabilities in simulation software for AI and machine learning applications.

o Hewlett Packard Enterprise (HPE) and Juniper Networks: HPE’s $14 billion acquisition of Juniper Networks was aimed at strengthening its networking technology portfolio.

• Energy Sector:
o ConocoPhillips and Marathon Oil: ConocoPhillips announced it would acquire Marathon Oil in an all-stock deal valued at $22.5 billion, reflecting ongoing consolidation in the energy sector to achieve scale and efficiency.

With regard to flow of Investment in India, in fiscal year 2024, the U.S. was the third-largest investor in India, contributing around $4.99 billion in FDI equity inflows. Despite the decline, the U.S. investment in India has been significant, focusing on sectors like technology, pharmaceuticals, and infrastructure, driven by India’s growing market and the strategic partnership between the two nations. There was a cautious optimism regarding Foreign Portfolio Investment (FPI) from the U.S. into India. The outcome of the U.S. elections and global interest rate scenarios played a role in investor sentiment. With Donald Trump’s victory, there’s an expectation of renewed FPI inflows, particularly due to the anticipated strengthening of trade and economic ties.

In 2024, M&A activity in India has shown significant dynamics with both domestic and cross-border deals marking the year with trends of Industry consolidation. Notable deals included the merger between Walt Disney and Reliance Industries Limited’s Indian media assets, valued at US$3 billion, highlighting the consolidation in the media sector. In the cement sector, Ambuja Cements’ acquisitions have been significant, reflecting consolidation in this industry.The pharmaceutical industry also saw significant deals. Healthcare also continued to attract investments due to rising consumer demand for quality healthcare services including acquisition of Bharat Serums by Mankind Pharma, involving a deal value of $1.6bn.

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