Companies Economy Live April 17, 2025 0 Comments

Ayana Renewables, O2 Power acquisition drives M&A deals in Q1 2025

According to Grant Thornton Bharat’s Dealtracker for Q1 2025, ONGC NTPC Green’s, a JV of ONGC Green and NTPC Green Energy, acquisition of Ayana Renewable Power for around $2.3 billion is the deal of the quarter

The acquisition of Ayana Renewable Power and O2 Power for a cumulative $3.8 billion helped drive the M&A activity during Q1 2025 aiding domestic transactions to hit an all-time quarterly high.

According to Grant Thornton Bharat’s Dealtracker for Q1 2025, ONGCNTPC Green’s, a JV of ONGC Green and NTPC Green Energy, acquisition of Ayana Renewable Power for around $2.3 billion is the deal of the quarter.

“This acquisition marks a historic milestone and is the second-largest acquisition in the renewable energy (RE) space after Adani Green Energy’s acquisition of SB Energy from SoftBank Group and Bharti Group for $3.5 billion all-cash in 2021,” it added.

Shanthi Vijetha, Partner Due Diligence at Grant Thornton Bharat, said banking and financial services as well as energy and natural resources sectors witnessed a significant surge in deal values, growing by 4.6x and 7.1x, respectively, together accounting for 38 per cent of the overall deal values.

ONGC-NTPC Green’s deal, coupled with JSW Neo Energy completing the acquisition of O2 Power for around $1.467 billion helped push up deal values in the energy and natural resources sector to the second spot in Q1 2025.

The energy and natural resources sector reported a total deal value of $4.3 billion, after the banking and financial services sector, which raised around $5 billion.

The energy and natural resources sector secured the second-highest values, fuelled by two significant billion-dollar acquisitions, Grant Thornton Bharat said.

Besides, JSW Group made three strategic acquisitions in this sector, totalling $1.5 billion; one among them was the first Insolvency & Bankruptcy Code (IBC) deal in this sector in Q1 2025, it added.

Overall, the M&A activity surged with 228 deals valued at $15.8 billion, marking a 15 per cent increase in volumes and a 21 per cent rise in values from the previous quarter.

Domestic M&A transactions reached an all-time quarterly high, dominating the space with a 72 per cent share of M&A volumes and a 67 per cent share of M&A values.

Notably, domestic values were driven by three billion-dollar acquisitions together accounting for nearly 41 per cent of the total M&A values.

Big ticket domestic transactions helped push the average deal value to a high of $165 million in the energy and natural resources sector during January-March 2025.

Vijetha noted that Q1 2025 commenced strong with 636 transactions valued at $24.4 billion driven by all-time high M&A activity with 228 deals ($15.8 billion) dominated by domestic transactions coupled with record inbound activity. PE activity has been witnessing quarter on quarter increase with return of billion dollar deals in this quarter.

“This momentum is expected to continue through 2025 as investors are strategically channelling funds into high-growth sectors like retail, banking, renewable energy, and e-mobility,” he added.