India’s corporate landscape has witnessed several high-stakes business deals that seemed poised for success but collapsed just before completion. Whether due to financial disagreements, regulatory hurdles, leadership conflicts, or last-minute market shifts, these failed mergers, acquisitions, and strategic partnerships highlight the complexities of deal-making in India.
Some of these deals, if successful, could have reshaped entire industries, while others fell apart due to corporate miscalculations or unforeseen economic conditions. These cases serve as valuable lessons in risk management, negotiation strategies, and regulatory compliance for businesses operating in India’s fast-evolving market.
In this list, we take a deep dive into 10 major business deals in India that failed at the last minute, uncovering why they collapsed and what happened afterward.
1. Sony and Zee Entertainment Enterprises Merger – A Media Giant That Never Was
- Deal Value: $10 billion
- Reason for Failure: Financial disagreements and non-compliance with agreement terms
- What Happened Next? Legal disputes and eventual settlement
The much-anticipated Sony-Zee merger, announced in 2022, aimed to create one of the largest media conglomerates in India. However, in January 2024, Sony abruptly terminated the deal, citing Zee’s failure to meet financial obligations.
Following the collapse, Zee initiated arbitration proceedings against Sony but later reached an out-of-court settlement in August 2024. The agreement, which involved withdrawal of legal claims by both parties, led to a 13% surge in Zee’s stock price as investors welcomed the resolution.
2. Jet Airways’ Failed Acquisition of Air Sahara – A Strategic Miscalculation
- Deal Value: ₹1,800 crore
- Reason for Failure: Integration challenges and financial strain
- What Happened Next? Jet Airways incurred heavy losses before shutting down in 2019
Jet Airways acquired Air Sahara in 2007, intending to strengthen its domestic aviation footprint. However, instead of fully integrating Air Sahara into its operations, Jet rebranded it as JetLite, leading to confusion among passengers, operational inefficiencies, and increased costs.
By 2015, Jet Airways wrote off ₹1,800 crore in losses, marking the acquisition as a strategic failure. Eventually, Jet Airways itself ceased operations in 2019 due to mounting debt and mismanagement.
3. Ola’s Attempt to Revive Foodpanda – A Short-Lived Gamble in Food Delivery
- Deal Value: Undisclosed
- Reason for Failure: Inability to compete with Swiggy and Zomato
- What Happened Next? Ola shut down Foodpanda India’s food delivery business in 2019
In 2017, ride-hailing giant Ola acquired Foodpanda India to expand into the booming food delivery sector. However, the company struggled to compete against Zomato and Swiggy, both of which dominated the market with better logistics and customer loyalty.
By 2019, Foodpanda’s daily order volume had dropped to just 5,000 orders, forcing Ola to shut down its food delivery business and pivot to cloud kitchens.
4. Flipkart’s Attempt to Acquire Jabong – A Deal That Never Materialized
- Deal Value: Undisclosed
- Reason for Failure: Valuation differences and strategic disagreements
- What Happened Next? Myntra (owned by Flipkart) acquired Jabong
Flipkart aimed to strengthen its fashion e-commerce division by acquiring Jabong in 2016. However, valuation mismatches and last-minute strategic disagreements led to the collapse of the deal.
Later, Myntra, a Flipkart-owned subsidiary, acquired Jabong, consolidating Flipkart’s leadership in India’s online fashion market.
5. Microsoft’s Acquisition of Nokia’s Mobile Business – A Global Failure with Indian Repercussions
- Deal Value: $7.2 billion
- Reason for Failure: Poor market performance and strategic misalignment
- What Happened Next? Microsoft exited the smartphone market
In 2014, Microsoft acquired Nokia’s mobile division, hoping to compete with Android and iOS. Despite the investment, Windows Phone’s market share stagnated at 3%, making it an unviable business.
Eventually, Microsoft wrote off $7.6 billion in losses and discontinued Windows Phone, marking the acquisition as one of the biggest tech failures globally, including in India.
6. Shree Renuka Sugars’ Brazilian Expansion – A Costly International Misstep
- Deal Value: $332 million
- Reason for Failure: Drought conditions and rising debt
- What Happened Next? Financial losses and workforce layoffs
Shree Renuka Sugars expanded aggressively by acquiring two Brazilian sugar mills. However, a severe drought in Brazil and high debt levels led to operational difficulties.
The company later laid off 900 workers and returned leased land, marking a major setback in its global expansion strategy.
7. MS Shoes’ Twin-Hotel Project – A Financial Crisis That Rocked the Stock Market
- Deal Value: Undisclosed
- Reason for Failure: Stock market manipulation and investor fraud
- What Happened Next? BSE temporarily shut down due to market panic
In the mid-1990s, MS Shoes East Ltd. bid for a high-profile twin-hotel project. However, when allegations of financial mismanagement and share price manipulation surfaced, the Bombay Stock Exchange had to shut down for three days to control market volatility.
Regulatory investigations followed, causing a significant dent in investor confidence.
8. Satyam’s Attempt to Acquire Maytas – A Scandal That Exposed Corporate Fraud
- Deal Value: $1.6 billion
- Reason for Failure: Conflict of interest and shareholder opposition
- What Happened Next? India’s biggest corporate fraud was exposed
In 2008, Satyam Computers announced a controversial $1.6 billion acquisition of Maytas Properties and Maytas Infra, both owned by Satyam’s founder’s family. The deal sparked shareholder outrage, forcing its cancellation.
Shortly after, Satyam’s chairman, Ramalinga Raju, confessed to inflating company accounts by $1.47 billion, leading to India’s largest corporate fraud case at the time.
9. Bharti Airtel and MTN Merger – A Global Telecom Giant That Never Came to Be
- Deal Value: $24 billion
- Reason for Failure: Regulatory and political hurdles
- What Happened Next? Bharti Airtel pursued independent expansion
In 2009, Bharti Airtel attempted to merge with South Africa’s MTN to create one of the world’s largest telecom companies. However, regulatory challenges, government restrictions on dual listing, and ownership disagreements led to the deal’s collapse.
Bharti Airtel later expanded into Africa through individual acquisitions instead of a large-scale merger.
10. HDFC Bank and Centurion Bank Merger – A Deal That Almost Happened
- Deal Value: ₹9,500 crore
- Reason for Failure: Regulatory delays and banking sector concerns
- What Happened Next? HDFC acquired Centurion Bank later
In 2008, HDFC Bank planned to acquire Centurion Bank of Punjab to strengthen its retail banking portfolio. The deal faced last-minute regulatory delays, causing uncertainty.
Eventually, HDFC Bank successfully completed the acquisition after resolving regulatory issues, making it one of the biggest private bank mergers in India.
Final Thoughts – 10 Huge Indian Business Deals That Almost Changed Everything
These failed business deals reveal the intricate challenges of corporate negotiations, from valuation mismatches and investor pushback to regulatory complications and shifting market dynamics. While some companies rebounded with alternative strategies, others suffered significant financial losses and legal battles.
For business leaders, entrepreneurs, and investors, these cases highlight key takeaways in risk assessment, due diligence, and adaptability in the Indian market. Understanding these failures not only provides insights into business decision-making but also helps companies navigate future deals with greater precision and caution.
As India continues to grow as a global business hub, these cautionary tales remind us that even the most promising deals can unravel at the last moment—unless backed by strong fundamentals, clear strategy, and airtight execution.
