India and ASEAN Drive Emerging Asia’s M&A Growth in 2024

By Velizar Velikov, Head of M&A Database at EMIS

Emerging Asia’s M&A market maintained strong momentum in 2024, driven by robust dealmaking in India and ASEAN countries. Deal volume surged 14.6% y/y to 3,224 transactions, highlighting the region’s resilience. However, a slowdown in large-scale deals and lower valuations led to a 29.3% y/y drop in total transaction value, falling to USD 215.7bn. 

India’s M&A Market Roars Back with Blockbuster Deals

India experienced a sharp rebound in M&A activity, recovering from the 2022-2023 downturn. Transaction volume surged 39.5% y/y to 1,145, with all major industries posting gains. The IT & Internet sector solidified its position as the most active, while Finance & Insurance attracted significant investor interest, ranking second. The Machinery, Electronics & Appliances sector led the charge, with deal volume more than doubling, fueled by government-backed initiatives to position India as a top manufacturing hub. 

The total deal value jumped 61.9% y/y to USD 56.2bn, boosted by the landmark USD 8.5bn merger between Reliance Industries and Walt Disney, alongside major transactions in Telecom and Food. Looking ahead, sustained domestic consumption, a thriving startup ecosystem, and continued entrepreneurial activity are expected to keep India’s M&A momentum strong in 2025. 

ASEAN Gains Traction Amid Shifting Investment Landscape 

The ASEAN region also recorded notable growth in M&A activity, with deal volume rising 6.8% y/y, though total transaction value fell by 32.8% to USD 47.5bn. Malaysia emerged as a key driver of expansion, supported by Real Estate & Construction and Wholesale & Retail transactions. Thailand also contributed to the uptick in activity, while Vietnam’s rapidly evolving economy continued to attract investors seeking long-term opportunities. 

China’s M&A Market Sees More Deals but Shrinking Values 

China, Emerging Asia’s largest M&A market, recorded a 4.4% y/y increase in deal volume, reaching 1,428 transactions, largely driven by a surge in dealmaking in the latter part of the year. Sectors such as Machinery, Electronics & Appliances and Services experienced heightened activity. However, the growth was concentrated in smaller deals, leading to a 50% drop in total transaction value to USD 90bn, as major industries faced valuation pressures. Looking ahead, China’s M&A market is expected to remain steady into 2025, supported by stable economic growth and strategic corporate realignments. While large-scale transactions may face challenges, investors are likely to focus on targeted, high-value opportunities. 

Outlook for 2025 

The M&A outlook for Emerging Asia remains promising, with economic resilience, strong foreign capital inflows, and sector-specific investment trends expected to sustain growth. India is likely to see further acceleration in dealmaking, driven by its booming manufacturing sector, technology investments, and government-led industrial policies. Meanwhile, China’s dealmaking should remain stable, with a shift toward strategic, high-value acquisitions rather than mega-deals. The ASEAN region, with its economic diversification and strategic geographical positioning, is expected to continue attracting international investors.

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