Mergers and acquisitions (M&As) in India were subdued in 2012, but are expect to see a sharp rise in the coming year, according to global consultancy firm Ernst & Young.
Both global uncertainties and domestic factors impacted M&As in the year just ended, but it will be very different in 2013 mainly due to cross-border activity, the consultancy said in a report released in New Delhi today.
"Deal activity declined by 8.1 per cent as global uncertainties and domestic factors left an impact on Indian M&As in 2012. However, the momentum temporarily picked up in 3Q12 and is expected to continue in 2013," the report said.
The third quarter of the year witnessed a strong surge in the M&A activity and may be an indicator of the return of the market's appetite for deal-making. This momentum in M&A is expected to continue in 2013, it said.
India's hunt for natural resources is expected to continue in the coming year. The Indian government is in the process of expediting the acquisition of oil, gas and coal assets abroad.
Further, several state-owned and private players have unveiled huge capital expansion plans and readied war chests worth billions of dollars for potential asset buys, it said.