Mumbai
: Rothschild & Co. Akeel Sachak, partner and head of global consumer, said the global tariff war could impact mergers and acquisitions (M&A) activities, adding that U.S. President Donald Trump’s positive stance on tariffs has attracted wider attention among economies and has shifted the market in terms of the market.
“The most certainty is that I hope Trump’s effect will have a negative impact on mergers and acquisitions, because it makes it difficult for companies to read what the economic outlook may have, and the impact of a range of different tariff war possibilities we face ourselves,” Sakak said.
According to him, when companies feel firm about the prospects of their business, they tend to pursue more mergers and acquisitions. “Up until a few weeks ago, I had a different view, expecting the ridiculous rhetoric around the tariffs to explode, but now I’m not sure. Stocks are reflecting this, with the main indicators shifting from persistent optimism to a vision since Trump’s re-election.”
Furthermore, better domestic growth prospects ensure that Indian companies are more introverted and no longer prepared to diversify globally. He said domestic growth in major markets will also mean that larger cross-border M&A activities may be muted.
“Currently, the U.S. backyard growth is likely to be more growing than anywhere else, so they will be more intrinsic in the same way as India outside India than Indian companies. So there may be no geographical diversification in previous periods,” Saakak said.
Purebred investment bank Rothschild & Co. Provide customers with recommendations on more than 70 geographical locations. In 2024, it advises global beverage company Coca-Cola to divest a 40% stake in its bottled unit Hindustan Coca-Cola Beverage (HCCB), to spin off the cheerful Bhartia Group for $1.47 billion.
Indian business
Sachak said the consumer sector is one of the company’s largest practice areas, and he worked at the bank for four decades and sat on its global board.
Subhakanta Bal, managing director of Rothschild & Co., said about the opportunity in the consumer sector in India, from a demand perspective, the opportunity in India is in a very good position.
“You have private equity and are keen to do more assets among consumers. “India’s assets are really small, and for global companies, it may not make sense for global companies because it won’t change the scope of India’s operations, and the scale of India’s operations may not make sense, so some global professional assets have a pretty strong inbound interest, especially for expanding assets,” Bal said.
“But for anything big, there will be professionals from around the world who want to get it in India. Plus, there is a lot of domestic interest in getting acquisitions and growth rates for larger local players.”
Sakak said the company is now expanding its focus areas in India, one of its most important markets outside Europe and the United States.
It has begun consulting in the stock capital market or ECM in India. “From the Indian perspective, we have been focusing on M&A. Globally, ECM is an important part of our activities. From the Indian perspective, in addition to M&A, the ECM I would like to say is now an important area of focus. Currently, we are performing multiple real-time tasks in IPO consultation in India.”
