Cross-Border Mergers and Acquisitions in India
Corporate Law Advisor, Forthcoming
19 Pages Posted: 25 Aug 2009
Date Written: October 25, 2008
Merger and acquisition ('M&A') activity in India is booming. In particular, the percentage of cross-border transactions has risen significantly. The past decade has witnessed the phenomenal growth of the Indian software industry and is responsible for putting India back on the world economic map. Mergers and acquisitions are necessary for the survival of the Indian industry if they wish to become global players and have a worldwide presence. It is evident that the appetite of Indian companies for making global acquisitions has grown bigger with time. Vodafone’s acquisition of a controlling interest in Hutchison Essar and Tata Steel’s acquisition of the European steelmaker, Corus headlined a frenzy of acquisitions of foreign companies by Indian corporate enterprises in the past year. This paper provides with an overview of the cross-border mergers and acquisitions in India in Part I. Procedural aspects as to the applicable laws have been provided in Part II. The overseas direct investment which has been playing a part for the cross border deals have been discussed at length thereafter in Part III. Further, the reforms recommended by the Irani Report have been summed up in Part IV. Part V deals with the mode of acquisition and finally in Part VI the paper has been concluded discussing the various transactional issues required for finalizing an acquisition.
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