Adani-Emaar India Acquisition Deal Falls Through Over Valuation Disputes

Talks between the Adani Group and Dubai-based Emaar Properties to acquire Emaar’s Indian real estate arm have collapsed following disagreements on valuation, according to people familiar with the matter. The move marks a pause in what could have been one of the more significant real estate consolidations in recent months.

Sources indicated that while discussions had progressed toward a deal valued at approximately $1.4 billion in enterprise terms, both parties ultimately failed to agree on the final price. The individuals, who declined to be named due to the private nature of the negotiations, noted that while talks have halted for now, there is still a possibility they could resume in the future if circumstances change.

The negotiations centered on Emaar India Ltd., the Indian subsidiary of the Dubai-headquartered real estate giant Emaar Properties PJSC. Emaar had confirmed earlier this year that it was exploring strategic options for its India business, including a potential sale. The Adani Group, which has been actively expanding its real estate footprint through its Adani Realty arm, was reported to be a front-runner in these discussions.

In March, Bloomberg reported that the talks had reached an advanced stage, with both groups considering a transaction that would value Emaar India at about $1.4 billion. This followed an announcement by Emaar in January that it was in preliminary talks with multiple potential buyers, including Adani Realty.

The failure to reach a valuation agreement highlights the challenges facing large-scale M&A activity in India’s real estate sector, where asset pricing, regulatory compliance, and ongoing project liabilities often complicate deal-making.

Representatives from both Emaar and Adani declined to issue formal comments regarding the halted negotiations. While Emaar has remained silent, Adani’s spokesperson stated there was "no immediate comment" available on the matter.

A successful acquisition would have significantly bolstered Adani Realty’s presence in the Indian real estate sector. According to the company's website, Adani Realty currently operates across 24 million square feet of built-up area, with another 61 million square feet under development. The potential integration of Emaar India’s projects, which are largely based in key metropolitan markets including Gurugram, would have provided Adani with expanded access to lucrative housing and commercial real estate segments.

Emaar India has had a turbulent history. Originally a joint venture between Dubai’s Emaar Properties and India’s MGF Developments, the company faced legal and operational challenges for years. The partnership dissolved in 2016, leading to a demerger and the eventual return of control to Emaar Properties. Since then, Emaar India has been working to stabilize operations and exit non-core assets, including completing stalled residential projects.

Analysts say that while the deal's collapse represents a missed opportunity for both parties, it underscores a growing trend of caution among Indian developers and global investors amid evolving market dynamics.

“Real estate valuations in India have become more complex post-pandemic, with higher construction costs, shifting consumer preferences, and tighter regulatory scrutiny,” said a Mumbai-based analyst who tracks real estate M&A. “Deals like this require very precise alignment on both value and execution capability, which may not have been possible in this case.”

The collapse of the talks does not rule out future engagement. Both companies are reportedly keeping communication channels open, although any further discussion will likely require recalibrated expectations on valuation and strategic alignment.