Acquisitions in India 2026: Top Deals, Legal Framework & Complete M&A Guide

Published 17 May 2026 · By Fastrack Legal Solutions, Delhi · Reading time: 8 minutes

The 2026 M&A landscape in India

India has entered its most consequential phase of corporate dealmaking in over a decade. Domestic consolidation reached approximately USD 104 billion in 2025, the strongest showing in two years, while outbound deals climbed to USD 22 billion, the highest level recorded in ten years. India now sits second only to China among emerging-market M&A destinations.

Behind these numbers lies a structural shift. Indian companies are no longer just attractive targets for foreign capital — they are increasingly buyers in their own right. At the same time, a reformed regulatory regime under the Competition (Amendment) Act 2023, the new Income Tax Act 2025 (effective 1 April 2026), and SEBI’s evolving Takeover Code is reshaping how transactions are structured and approved.

Biggest acquisitions in India 2025–26

1. Emirates NBD acquires RBL Bank — USD 3 billion

In October 2025, Dubai-headquartered Emirates NBD announced a USD 3 billion primary infusion to acquire up to 74 percent of RBL Bank, an Indian private-sector lender. The Reserve Bank of India cleared the deal in April 2026. This is the largest-ever foreign direct investment into Indian banking and the first time a foreign bank has been permitted to cross into majority ownership of a profitable Indian lender. The transaction triggered six regulatory regimes in parallel, including a mandatory 26 percent open offer under Regulation 3(1) of the SEBI Takeover Code.

2. Mitsubishi UFJ invests in Shriram Finance — USD 4.4 billion

Mitsubishi UFJ Financial Group (MUFG), Japan’s largest bank, made a USD 4.4 billion strategic investment in Shriram Finance, reinforcing Japanese conviction in Indian non-banking financial companies (NBFCs).

3. Sumitomo Mitsui–YES Bank — USD 1.6 billion

Sumitomo Mitsui Banking Corporation (SMBC) invested USD 1.6 billion in YES Bank, taking a significant stake in the recovering private lender.

4. Tata Motors acquires Iveco — approximately ₹40,000 crore

India’s Tata Motors bolstered its global commercial-vehicles presence by acquiring Italian truck-maker Iveco, giving the Tata Group meaningful market share in European heavy-vehicle manufacturing.

5. JSW Paints buys AkzoNobel India — ₹13,000 crore

JSW Paints acquired a majority stake in the Indian arm of Dutch paint major Akzo Nobel, instantly making JSW a top-tier player in the Indian decorative paints market.

6. Torrent Pharmaceuticals acquires JB Chemicals

Torrent Pharmaceuticals acquired a controlling stake in JB Chemicals & Pharmaceuticals from a KKR affiliate — a textbook private-equity exit through strategic sale rather than IPO.

7. Air India–Vistara merger (Tata Group)

Completed in November 2024, the merger combined Air India and Vistara into a single full-service carrier under the Tata Group. The combined Air India Group now covers 55 domestic and 48 international destinations across 312 routes, operating a fleet of around 300 aircraft.

8. IDFC Limited–IDFC FIRST Bank merger

Completed in 2024 at a share-exchange ratio of 155 bank shares for every 100 IDFC Limited shares, the merger simplified the IDFC group’s corporate structure and strengthened regulatory compliance.

Indian companies acquiring abroad

The rise of Indian buyers on the global stage is one of the most important shifts of this cycle. Indian IT major Coforge announced a USD 2.3 billion acquisition of US digital-engineering firm Encora — cited as an early test case under revised RBI foreign-exchange rules that now permit direct share swaps between Indian and foreign companies. Wipro extended into European defence and aerospace by acquiring French aerospace group Lauak. Indian pharma firm Aurobindo acquired US pharmaceutical company Lannett for USD 250 million.

Legal framework governing acquisitions in India

Any acquisition in India typically engages six concurrent legal regimes. Understanding how they interact is the difference between a deal that closes on time and one that drifts.

Companies Act, 2013

Governs scheme architecture, board approvals, shareholder meetings, and amalgamations under Sections 230–232. The September 2025 amendment to Section 233 (fast-track mergers) expanded the categories of companies that can avoid the NCLT route entirely, reducing some deal timelines by 6–8 months.

SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011

Triggers a mandatory open offer for 26 percent of the public float when an acquirer crosses the 25 percent shareholding threshold in a listed company, or when control changes hands. SEBI’s proposed amendments are moving minimum offer pricing to independent registered valuers.

Competition Act, 2002 (as amended in 2023)

Combinations crossing the asset or turnover thresholds — and now the new deal-value threshold of ₹2,000 crore introduced by the 2023 amendments — require prior CCI approval. The CCI Combinations Regulations 2024 have streamlined the green-channel route for non-overlapping transactions.

Foreign Exchange Management Act (FEMA), 1999

Governs all cross-border transactions, including NDI pricing rules, sectoral caps, and FIRMS reporting. Recent RBI drafts have liberalised the External Commercial Borrowing framework, replacing the fixed USD 750 million cap with a net-worth linked limit of USD 1 billion or 300 percent of net worth, whichever is higher — meaningful for leveraged acquisition financing.

Income Tax Act, 2025

Effective from 1 April 2026, the new Income Tax Act overhauls deal taxation, capital-gains treatment on share sales, and buyback taxation. The Union Budget 2026–27 also lowered effective capital-gains rates for minority shareholders in buybacks.

Sector-specific regulators

The RBI (banking, NBFCs), IRDAI (insurance), TRAI (telecom), and Ministry of Information and Broadcasting (media) impose additional sectoral consents. The Emirates NBD–RBL transaction required RBI sectoral consent alongside SEBI, CCI, and FEMA clearances.

How an acquisition is structured in India: 8 stages

1. Term sheet and confidentiality: Non-binding heads of terms and an NDA between buyer and seller.
2. Legal, financial, and tax due diligence: Typically 4–8 weeks. A Delhi-based corporate firm like Fastrack Legal Solutions handles legal due diligence covering corporate records, litigation, contracts, IP, and regulatory compliance.
3. Deal structuring: Share purchase, asset purchase, slump sale, scheme of arrangement, or merger by absorption — each with different tax, liability, and approval consequences.
4. Definitive agreements: Share Purchase Agreement (SPA), Shareholders’ Agreement (SHA), escrow agreements, and ancillary contracts.
5. Regulatory filings: CCI notification, SEBI filings, RBI/FEMA reporting, sectoral approvals.
6. Open offer (if listed): SEBI Takeover Code timeline of approximately 75–90 days.
7. Closing: Funds flow, share transfers, board reconstitution.
8. Post-closing integration: Statutory filings, employee transitions, IP assignments, dispute-resolution clauses tested in arbitration if disagreements arise.

Which sectors are leading Indian M&A in 2026

• Banking and financial services: Foreign majority ownership now possible; Japanese and Middle Eastern capital dominant.
• Technology and digital services: Mid-sized acquisitions in AI, cloud, fintech, and enterprise software.
• Pharma and healthcare: Indian players moving from generics to specialty; outbound deals rising.
• Defence and aerospace: Deal volumes up 60 percent year-on-year; both inbound and outbound activity.
• Energy and infrastructure: Adani, Reliance, JSW Energy and others consolidating renewables and thermal assets.
• Consumer and retail: Reliance Consumer’s acquisitions building scale across categories

Outlook for the rest of 2026

India’s real GDP growth is projected at 6.8 percent for FY 2025–26, with inflation forecast at a stable 2.6 percent. The RBI’s June 2025 cut of the reverse repo rate to 5.5 percent (maintained through October 2025), expectations of further US Federal Reserve easing, and the government’s measures allowing banks to finance M&A transactions, higher FDI in insurance, and direct cross-border share swaps all point to continued momentum.

Risks remain: geopolitical volatility, valuation discipline, and the speed of post-merger integration. But the broad direction is unmistakable — India has moved from a market that foreign acquirers occasionally visited to one where deals of every direction (inbound, outbound, and domestic) are happening at scale.

Frequently Asked Questions about acquisitions in India

What is the largest acquisition in India in 2025–26?

Emirates NBD’s approximately USD 3 billion acquisition of a controlling stake in RBL Bank is the largest foreign-direct-investment acquisition in Indian banking history. The RBI cleared the deal in April 2026.

What laws govern acquisitions in India?

Six core regimes: the Companies Act 2013, the SEBI Takeover Regulations 2011, the Competition Act 2002 (as amended in 2023), FEMA 1999, the Income Tax Act 2025 (effective 1 April 2026), and sectoral regulations from the RBI, IRDAI, and other regulators.

Do I need CCI approval for an acquisition in India?

CCI approval is mandatory if the transaction crosses the asset, turnover, or deal-value (₹2,000 crore) thresholds set under the Competition Act 2002 and the Combinations Regulations 2024.

How long does an acquisition take in India?

A typical private M&A transaction takes 4–9 months from term sheet to closing. Schemes of arrangement before the NCLT take 9–14 months; fast-track mergers under Section 233 can close in 3–5 months.

What is the difference between a merger and an acquisition in Indian law?

Indian statutes use the term amalgamation, defined under Section 2(1B) of the Income Tax Act 1961, for what is commonly called a merger — two or more companies combining into one. An acquisition is the purchase of a controlling stake in another company, with both entities continuing to exist separately.

Can a foreign company acquire 100 percent of an Indian company?

Yes, in most sectors under the automatic FDI route. Sectoral caps apply in defence, insurance, banking, broadcasting, and certain other regulated industries. Government approval is required for investments from countries sharing a land border with India.

Does Fastrack Legal Solutions advise on M&A and corporate transactions?

Yes. Fastrack Legal Solutions is a Delhi-based corporate law firm providing legal advisory and litigation services across due diligence, contract drafting, arbitration, banking and financial advisory, asset securitisation and structured finance, and corporate & commercial litigation. The firm advises Indian and international clients on transaction structuring, regulatory approvals, and post-closing dispute resolution.