Nifty99000 100%

Sensex99000 100%

Article rating: No rating
Article rating: 4.8
Article rating: 5.0
Article rating: 3.0
Article rating: No rating
Article rating: 5.0
Article rating: No rating
Article rating: No rating
Article rating: 4.5
Article rating: No rating
Article rating: No rating
Article rating: 4.2
Article rating: 5.0
Article rating: 4.0
Article rating: No rating
Article rating: No rating


Consumer, retail M&A deal volume dips 16 pc in 2017; outlook bullish: Report

Author: PTI/Thursday, April 12, 2018/Categories: FMCG & Retail

Consumer, retail M&A deal volume dips 16 pc in 2017; outlook bullish: Report

New Delhi, April 12 - Merger and acquisition (M&A)activity in the consumer and retail sector took a breather in 2017 with deals worth USD 392 billion announced in 2017, down 16% from the year ago period, says a report.

According to A T Kearney's 2018 Consumer and Retail M&A Report, consumer and retail M&A deal volume declined in 2017, but is set to increase this year as strategic, cross-industry acquisitions were seen as a way to new markets.

"In India, we believe M&A will increasingly be a faster and viable means for consumer companies to gain access to brands, capabilities and customers than organically possible," said Debashish Mukherjee, Partner, Head, Consumer and Retail Industries.

The report further noted that with the completion of several political elections around the world, and both PE firms and consumer products companies reporting record amounts of cash reserves, a rise in global M&A deals is likely.

“Much of the wait-and-see climate we saw in 2017 that has characterised M&A globally has dissipated. At the same time, with interest rates finally on the uptick, we are likely to see an increase in US companies making innovative acquisitions to stay relevant,” said A T Kearney Partner Bob Haas, leader of the firm's global Mergers & Acquisitions Practice and co-author of the report.

Based on interviews with C-level retail executives, the report noted that the market is characterised by optimism as 71 per cent of respondents reported that M&A is creating value, up from 48 per cent last year.

A T Kearney analysed more than 1,00,000 consumer and retail transactions from 2006 through Q1 2018, spanning sectors such as food and beverage, grocery, pharmacy, and personal care.

The study also included insights from C-level executives of global consumer and retail companies based on a survey that sought their perspectives on trends in consumer and retail sectors and future M&A activity.

Print Rate this article:
No rating

Number of views (166)/Comments (0)

rajyashree guha


Other posts by PTI
Contact author

Leave a comment

Add comment



Ask the Finapolis.

I'm not a robot
Dharmendra Satpathy
Col. Sanjeev Govila (retd)
Hum Fauji Investments
The Finapolis' expert answers your queries on investments, taxation and personal finance. Want advice? Submit your Question above
Want to Invest



The technical studies / analysis discussed here can be at odds with our fundamental views / analysis. The information and views presented in this report are prepared by Karvy Consultants Limited. The information contained herein is based on our analysis and upon sources that we consider reliable. We, however, do not vouch for the accuracy or the completeness thereof. This material is for personal information and we are not responsible for any loss incurred based upon it. The investments discussed or recommended in this report may not be suitable for all investors. Investors must make their own investment decisions based on their specific investment objectives and financial position and using such independent advice, as they believe necessary. While acting upon any information or analysis mentioned in this report, investors may please note that neither Karvy nor Karvy Consultants nor any person connected with any associate companies of Karvy accepts any liability arising from the use of this information and views mentioned in this document. The author, directors and other employees of Karvy and its affiliates may hold long or short positions in the above mentioned companies from time to time. Every employee of Karvy and its associate companies is required to disclose his/her individual stock holdings and details of trades, if any, that they undertake. The team rendering corporate analysis and investment recommendations are restricted in purchasing/selling of shares or other securities till such a time this recommendation has either been displayed or has been forwarded to clients of Karvy. All employees are further restricted to place orders only through Karvy Consultants Ltd. This report is intended for a restricted audience and we are not soliciting any action based on it. Neither the information nor any opinion expressed herein constitutes an offer or an invitation to make an offer, to buy or sell any securities, or any options, futures or other derivatives related to such securities.

Subscribe For Free

Get the e-paper free