Indian firms pursue European acquisitions amid growing global ambitions

Core Insights - Indian companies are increasingly pursuing acquisitions in Europe, with the value of mergers and acquisitions reaching $5.7 billion in 2025, the highest since 2020, but still below the record of $15.4 billion in 2006 [1][7]. Group 1: Major Acquisitions - Tata Motors Ltd. is leading the acquisition trend with its offer to buy Iveco Group NV for approximately €3.8 billion ($4.4 billion), marking a significant entry into Europe's commercial-vehicle industry [2]. - Jindal Group is also expanding into Europe with a proposed takeover of Thyssenkrupp AG's steel unit [2]. Group 2: Market Confidence and Strategy - There is a growing confidence among Indian companies to engage in international deals, viewing themselves as global players, driven by strong balance sheets and the availability of financing [3][6]. - The management capabilities of Indian firms have improved, allowing them to handle complex transactions and take on more risk [4]. Group 3: Market Dynamics - The buoyant Indian stock market, with the Sensex up about 9% in 2025, has bolstered the financial positions of Indian firms, enabling them to pursue acquisitions in Europe where targets are trading at lower multiples [7]. - The trend of Indian companies acquiring European assets is expected to accelerate if high-profile deals are completed [8]. Group 4: Recent Transactions - Recent acquisitions include Sudarshan Chemical Industries Ltd.'s purchase of German firm Heubach and Wipro Infrastructure Engineering Ltd.'s majority stake in French manufacturer Lauak Group [8]. - RP-Sanjiv Goenka Group acquired Manchester Originals, a cricket team in the UK, showcasing the diverse interests of Indian conglomerates [8]. Group 5: Inbound Interest and IPOs - There is also significant inbound interest in India, with about $15 billion in deals in the financial sector this year, alongside nearly $16 billion raised in initial public offerings in Mumbai [9]. Group 6: Investment Banking Activity - Citigroup Inc. reports that in about 70% of potential sellside transactions in Europe, there is interest from Indian buyers, indicating a busy market for Indian investments [10].