Review of Company Law on Merger and Acquisition in India Using SCP Paradigm

Abstract

The role of government in Mergers and Acquisitions (M&A) and governance with respect to the same need to be re-defined as M&A gains cutting edge phenomena. The paper intends to review, summarize and discuss various institutional laws regarding mergers and acquisitions (M&A) in India and thereby recommend fruitful policy guidelines for institutions and managers participating in merger and acquisition deals. This paper provides a review of the Report of the expert committee on company law on M&A published by Ministry of Corporate Affairs (MCA). The paper on M&A by MCA has summed up thirty-four points which can be classified under five broad aspects 1. Structure and Objective, 2. Implementation, 3. Potential Benefits, 4. Potential Constraints and 5. Proposed Remedies. These are further analyzed in the light of Structure, Conduct and Performance (SCP) paradigm.

Keywords: Company Law, Structure-Conduct-Performance, Merger, Acquisition, Corporate Affairs

JEL Classification: G35, K21