A Critical Appraisal Of Cross-Border Mergers And Acquisitions In India

Ayush Tiwari, BA LLB, BMS College of Law, Bengaluru

ABSTRACT

The quest for attaining supreme industrial competence has gained momentum over the past few years and this is evident from the fact that more and more enterprises are looking for synergistic alliances to cement their hegemony on the corporate front. Corporate restructuring thus becomes important and paves a way for the enterprises which are looking to reorientate and realign their assets and liabilities, stay competitive and attain dynamism. Mergers and Acquisitions (hereinafter referred to as M&A”) is a commercial road that enterprises choose to travel on and fulfil their short- term and long-term objectives. Despite the global turmoil caused by the pandemic, India has been able to steady its growth prospects and remain a viable avenue for investments and multinational corporations. This is evident from the fact that despite the initial shocks and disturbances resulting from the COVID scare, India has continued to be the most favourable destination for Foreign Direct Investment (FDI). This has also led to the growth in the number of cross-border M&A because of the favourable market climate and a plethora of opportunities for growth that the Indian economy offers. Through this paper, the author attempts to throw light on the legal complexities surrounding cross-border M&As and issues that arise therein. Further, a comprehensive depiction of cross-border M&As has been presented and also suggestions have been recommended to offset the legal and regulatory complexities that arise in a cross-border M&A transaction by creating a conducive environment for their growth and development. This paper concludes with a holistic observation concerning the need for cross- border M&A transactions for ameliorating the economy and establishing a global stature for India on the economic front.

Keywords: cross-border mergers and acquisitions, M&A waves, synergy, corporate restructuring, FDI