But India led Apac in financial space deals

India closed 27 merger and acquisition deals in the financial sector space — the highest in the Asiapacific (Apac) region in the quarter ended March 31, 2024 — compared to 13 in Japan, 12 in Australia, 11 in South Korea, and only nine in Mainland China, according to S&P Global Market Intelligence.

The number of deals closed in March quarter of 2024 is one more than the previous year. For all other countries, the number of deals fell or remained stagnant. Deal volumes in

Apac fell 14 per cent year-on-year in the period, dragged by declines in Mainland China and Australia.

Economic uncertainties, higher funding costs, and increased volatility due to geopolitical risks were among the reasons for the slowdown. The report says that the bright spot was India. Given the country’s strong forecast and resilience, there was a reasonable expectation for robust dealmaking, said Asialink Business Chief Executive Officer Leigh Howard.

China saw deal numbers fall to nine in March quarter 2024 compared to 24 the year before. In Australia, deals dropped to 12 in the same period from 26 a year ago.

Four of the top 10 deals in value were closed in India, with a combined deal value of $845.79 million (about ~7,061 crore). The biggest was Sumitomo Mitsui Financial Group’s (SMFG’S) acquisition of SMFG India Credit, a specialty finance company, for $700 million (about ~5,843 crore).

The others include Piramal’s acquisition of Annapurna Finance, Rajiv Rattan’s purchase of a stake from Lonestar Americas in Rattanindia Finance, and Muthoot Finance’s investment in Belstar Microfinance.