British companies turn to India for emerging markets deals

The UK was the primary target for M&A deals, accounting for $168bn, while the US was closed behind with $163bn. Canada was ranked third with $51bn, with Spain, Australia, Sweden and South Africa also in the top ten.

Edward Braham, head of corporate at Freshfields, said: "The FTSE 100 investments over the past decade have been geographically concentrated, with more than three quarters targeting just 10 countries.

"When it comes to searching for faster growth, India has tended to be the front runner over the last 10 years.”

Examples of deals between British and Indian companies include BP’s tie-up with Reliance Industries, which was worth $7.2bn. Tesco has also agreed a deal with Tata to launch a retail chain in India.

Pratap Amin, chairman of Freshfield’s India group, said: “India has been more open to international investment in a range of sectors over the past decade, particularly those that are capital-intensive and have needed international expertise. British companies have been keen to capitalise on the opportunity and make the most of established historical, cultural and diplomatic ties.

“While Indian deal activity is undergoing a temporary slowdown, partly due to uncertainty over forthcoming political elections, India remains an important international destination for M&A.”

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