List of Mergers and Acquisitions of 2022: Industry titans and Indian Multinational companies have been on a spending spree, buying companies and startups which are strategically planning to beat their competitors. The recent acquisitions of ACC and Ambuja by Adani are one such example.

Today we’re going to look at some of the notable mergers and acquisitions by Indian companies in 2022. But before that, let’s take a simple look at the Mergers and Acquisitions of 2022 (M&As). Keep Reading to Find out!

What exactly is a Merger and an Acquisition? 

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A merger is a joint partnership between two companies coming together to form one larger organization. Usually, mergers occur between two competing companies or companies in the same industry. For example – The merger of Vodafone and Idea into VI, two rival telecom companies in India.

When two companies jointly operate under one entity, they have a better chance of fighting fierce competition. This is especially true when the growth in an industry is saturated and only a few players dominate the market. 

An acquisition, on the other hand, is when a larger, holding company completely absorbs a smaller company.  One famous example is the purchase of Flipkart by Walmart. The strategic acquisition allows Walmart to compete with Amazon in India without having to set up its operations from scratch.

List of Latest Mergers and Acquisitions of 2022

The following is a list of Mergers and Acquisitions of 2022, stay tuned to find out more.

1. L&T Infotech and Mindtree 

Larsen and Toubro Infotech and Mindtree are two IT companies that recently merged to form the 6th largest IT Conglomerate in India. Both companies were subsidiaries of the L&T group. Shareholders of Mindtree will receive 100 shares of the new LTIMindtree for every 73 shares of Mindtree.

This merger will allow the two tech companies to compete with big players like Infosys and Wipro for market share in the IT, Banking, and financial services industries. The merger between these two brands is one of the biggest recent M&A deals of 2022.

2. Adani and Holcim India (ACC & Ambuja Cement) 

In the most recent acquisition by the Adani Group, Gautam Adani cemented his position in the construction segment by purchasing two of Switzerland-based Holcim’s ACC and Ambuja Cements. The acquisition makes Adani the second-largest cement manufacturer in India.

This marks the largest construction and infrastructure acquisition ever in India. The Adani Group bought a 63 percent stake in Ambuja cement and 4.5 percent in ACC for $ 6.5 billion dollars

ALSO, READ RK Damani Portfolio Analysis – Rakesh Jhunjhunwala’s Guru!

3. Tata Group and Air India 

What goes around comes back around. Or in the case of Tata and Air India – It flies back around.  The airline was started by the Tata group in 1932 before being sold to the Government of India. In 2022, Tata Group regained the company from the Government for an eye-watering price of $ 2.4 Billion dollars (Rs. 18,000 crores ). 

Under the management of the Government, the Airline suffered heavy losses. After half a decade, the company has rerouted its path back to its origins. 

4. PVR and Inox

The first and second waves of Covid-19 wiped out entire companies and left multiple industries either bankrupt or in debt. Tourism and hospitality took one of the worst hits and a close second would be the entertainment industry.

PVR and Inox were once the two main competitors of cinema screening in India. However, the pandemic and emergence of OTT platforms have brought film screens to their knees.

The merger between PVR and Inox was announced in March 2022. Together they could potentially become the largest entertainment company in India and hold a majority stake in the cinema screening industry with over 1546 screens across 109 cities. It is said to be the biggest recent M&A deals of 2022 in India.

5. HDFC Ltd and HDFC Bank 

Housing Development Financial Corporation or HDFC is a private lender that provides long-term loans for home buyers. HDFC Bank, on the other hand, is one of the largest consumer and commercial bankers in India. 

Both corporations announced their merger in April 2022. Together the new entity will be known as HDFC Bank Ltd. Both entities are the largest in their sectors – Mortgage and Private Lending.

The merger will no doubt make the new parent company the largest private bank with access to the housing market as well.  The merger will give HDFC shareholders 42 shares of HDFC bank for every 25 shares of the mortgage lender. 

6. Infosys and Oddity

The oddity is a Digital Marketing Experience company based in Germany. They are one of the largest independent agencies in Germany with 300 digital experts across the country.

Infosys recently acquired the company in April 2022 which will merge with Wongdoddy, the Human Experience Agency owned by the Tech Giant. Their clients range from Disney to Mercedes-Benz. The acquisition is estimated to be worth 50 million Euros (~415 Crores). 

7. Tech Mahindra buys Thirdware and Geomatic AI

Thirdware is a Mumbai-based digital service and consulting company. They employ 850 people and had a record turnover of 226 crores in the year ending 2020-21. Tech Mahindra announced an all-cash deal for the tech company of about Rupees 322 crores or USD $ 42 million for a 100% stake in the company.

The automotive consulting and IT arm, combined with their ERP solutions is expected to provide Tech Mahindra with a competitive edge. 

Prior to this, Tech Mahindra acquired an 80% stake in Geomatic AI, an Australian-based AI company for 6 million AUD ( ~ 32 crores ). The company was previously owned by AusNet and Ozzie energy company. The purchase should give Tech Mahindra a step forward in AI tech and Drone tech as well. 

8. Reliance and Adverb

RIL purchased a 54% stake in Noida-based startup, Adverb. The logistics startup is focused on automation technology in warehouses and factories through robotics. They already have a range of robots for warehousing solutions.

Apart from buying a major stake in the company, RIL recently placed a $ 1 Billion order for their robotic solutions with 5G tech, over the next 5  years. The robots are likely going to be used at Reliance Industries’s refinery at Jamnagar, Mumbai.  

9. Axis Bank and Citibank Consumer Banking

Citibank, in the last leg of March 2022, announced that it is selling off its Indian consumer banking business to Axis bank, in one of the largest banking acquisitions in India. The deal, worth about $ 1.6 billion dollars 

( Rs. 12422 crores ), will give Axis all 3600 Indian employees of the New York-based bank. This includes Citi’s relationship managers who also bring in a basket of clientele with them.  According to Citi, the deal is expected to close in the second half of 2023. And with this, our post on mergers and acquisitions of 2022 comes to a conclusion.

Note – If you want to read more on Mergers and Acquisitions, check out our other article on the 5 Largest M&As in India.

In Closing

Thank you for taking the time to read this FinGrad take on Mergers and Acquisitions of 2022. Your comments, thoughts, and opinions are valued and appreciated. Check out our (FREE) courses section for more investing-related content. Happy Investing!

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