Prominent M&A Transactions in Recent Times
I. Introduction
Mergers & Acquisitions (M&A) play a pivotal role in shaping the global business landscape, enabling companies to enhance operational efficiencies and drive innovation. In recent years, several prominent M&A transactions have impacted industries ranging from media and telecommunications to pharmaceuticals and aviation. This Article examines these key M&A transactions, highlighting their strategic implications and expected industry transformations.
i. Reliance and Disney
The merger between Reliance Industries, Viacom18 Media, and Walt Disney Company, finalized on November 14, 2024, created a formidable entity in India's media and entertainment sector valued at approximately $8.5 billion. In this joint venture, Reliance exercises a 16.34% stake, Viacom18 exercises 46.82% and Disney retains 36.84% stake.
The partnership integrates Viacom18's extensive media assets with Disney's Star India, resulting in a vast portfolio that includes 100 television channels and two major streaming platforms. Reliance's investment of around $1.4 billion aims to enhance the venture's competitive edge in a rapidly evolving market.
From an M&A perspective, this merger signifies a strategic consolidation aimed at achieving significant operational synergies and enhancing market presence. The combined entity is expected to capitalize on the growing demand for diverse content across both traditional and digital platforms, reaching approximately 750 million viewers in India and the global Indian diaspora. Regulatory approvals from the Competition Commission of India (CCI) and other international bodies have facilitated a smooth transition, allowing the merged entity to focus on leveraging its combined strengths to disrupt existing media models. By integrating content libraries and sports rights, the joint venture is well-positioned to compete effectively against global giants like Netflix and Amazon, ultimately reshaping the media landscape in India.
ii. Bharti Airtel and BT Group
Bharti Global, the investment arm of Bharti Enterprises acquired 24.5% of the issued share capital in UK’s BT Group plc in a deal valued around $ 4 billion. This acquisition positions Bharti Global as the majority shareholder in the BT Group. The acquisition commenced through initial 9.99% stake acquired through open market trading by Bharti Televentures. The remaining 14.51% stake was acquired after obtaining all required regulatory approvals.
This transaction represents a significant outbound investment by an Indian company. The acquisition is expected to foster collaboration and facilitate access to advanced telecom enterprises between the two countries.
iii. Mankind Pharma and Bharat Serums & Vaccines
Mankind Pharma successfully acquired Bharat Serums and Vaccines Limited (BSV) for approximately $ 1.65 billion. The deal integrates over 2,500 employees from BSV into Mankind Pharma’s operations. The acquisition was financed through a mix of debt instruments and potential equity dilution with Mankind Pharma raising approximately USD 1.2 billion through non-convertible debentures and commercial paper, additional USD 360 million were raised through a Qualified Institutional Placement (QIP).
This acquisition positions Mankind Pharma as a key player in the women’s health and fertility sector in India. BSV is recognised for its expertise in biopharmaceuticals, offering a diverse portfolio that includes products for women’s health, fertility, critical care and niche biologics. From an M&A perspective this acquisition enables Mankind Pharma to enhance competitive edge in the pharmaceutical industry.
iv. Tata Group and Air India
The Tata Group acquisition of Air India got finalised on January 27,2022. The deal valued at approximately $ 2.4 billion, where Tata’s subsidiary Talace Private Limited acquired a 100% stake in Air India. The comprehensive acquisition led to Tata Group assuming $ 2 billion of Air India’s debt. Additionally, Tata Group gained control over Air India Express and 50% stake in Air India SATS, enhancing its portfolio in the aviation sector.
v. Air India and Vistara
Following the acquisition of Air India, Tata Group announced the merger of Air India and Vistara, which got finalised on November 12, 2024. Vistara, a joint venture between Tata Sons (51%) and Singapore Airlines (49%) brought a premium service model to the market. This strategic deal underscores Tata Group's commitment to revitalizing Air India and enhancing its competitiveness in the global market. The investment from SIA is aimed at improving Air India's operational efficiency and customer experience.
From an M&A perspective, this deal is less about outright acquisition and more about strategic alignment. Ultimately, this merger created a unified airline capable of competing effectively both domestically and internationally, paving the way for Air India to emerge as a leading global aviation brand.
vi. Data Infrastructure Trust (DIT) and ATC Telecom Infrastructure Private Limited
Data Infrastructure Trust (DIT) finalised an acquisition of ATC Telecom Infrastructure Private Limited (ATC India) for approximately $ 2.5 billion. This transaction led to DIR acquiring full ownership of ATC India. Through this transaction, DIT enhances its position in the telecom infrastructure market.
DIT utilised a mix of equity and debt to finalise this acquisition. It raised around $ 800 million from Brookfield Asset Management and other investors. DIT also secured $ 950 million through non- convertible debentures (NCDs) and bank loans. The deal was approved by Competition Commission of India (CCI) in August 2024, indicating a smooth regulatory review process.
From an M&A perspective, this acquisition shall strengthen DIT’s operational capabilities and shall enhance India’s telecommunications infrastructure contributing to the digital transformation within India’s telecom sector.
vii. Shadowfax and CriticaLog
Shadowfax, a Flipkart based logistics startup, acquired CriticaLog, a company known for providing specialised logistics services. This acquisition will bolster Shadowfax’s capabilities to handle high value shipments across industries. By integrating CriticaLog’s services, Shadowfax aims to expand its reach and offer more sophisticated solutions to its consumers. This strategic move aligns with Shadowfax’s broader goals of strengthening its presence in the Indian logistics market and addressing the challenges associated with last mile delivery.
The financial details of the acquisition have not been disclosed. However, from an M&A perspective, this acquisition announced on January 2025 underscores the importance of specialised logistics services in meeting the evolving needs of businesses and consumers. By leveraging CriticaLog’s expertise, Shadowfax can improve its ability to handle complex logistics tasks in sectors requiring high levels of precision and reliability.
viii. Tata Electronics Private Limited (TEPL) and Pegatron Technology India Private Limited ( PTI)
TEPL, recently acquired a controlling 60% stake in PTI, a subsidiary of Pegatron Corporation. This acquisition announced on January 2025, shall enhance Tata’s capabilities in manufacturing iPhone, locally in India. Pegatron Technology India, known for providing electronics manufacturing services to global clients like Apple, will undergo rebranding to align with its new ownership while continuing to deliver high quality services.
From an M&A perspective, this acquisition positions Tata Electronics as a prominent player in the electronics manufacturing sector in India. Through this acquisition, TEPL aims to enhance production capabilities by increasing the share of iPhone assembly in the country. As Tata Electronics continues to leverage its manufacturing footprint, this acquisition will play a critical role in meeting the global demand for advanced electronics.
ix. Equinox India Development and NAM Estates
Equinox India Development Private Limited, formerly Indiabulls Real Estate, completed its merger with NAM Estates, an entity of the Embassy Group. This strategic move consolidates the strength of both companies, creating a leading real estate development platform in India. The merged entity aims to leverage its diversified portfolio to drive growth and deliver value to stakeholders.
The financial details of this merger have not yet been disclosed. However, from an M&A perspective, this merger effective from January 24, 2025 represents significant consolidation in the Indian real Estate Sector. The merged entity shall act as a major player in key markets, for instance, Bengaluru, Chennai and the National Capital Region (NCR). The merger enhances operational efficiencies and increases the company's competitive edge, through aligning with Embassy Group's growth strategy to create a flagship real estate platform.
II. Conclusion
The recent wave of M&A across various sectors demonstrates a global trend toward consolidation and strategic realignment. These transactions have not only enhanced market competitiveness but also fostered innovation, operational efficiencies and expanded global presence. As industries continue to evolve, M&A will remain a key driver of growth, enabling companies to navigate dynamic economic landscapes and unlock new opportunities for long-term success.
