Abstract
This paper examines the significance of cross-border mergers and acquisitions (M&A) in the context of corporate restructuring, particularly in India post-liberalization. It highlights the transformative impact of the Companies Act 2013, which facilitates both inbound and outbound M&A, streamlining the process through the establishment of the National Company Law Tribunal (NCLT) and reducing regulatory hurdles. The study aims to analyze the concept of cross-border M&A, the reasons driving these transactions, and the relevant provisions of the Companies Act 2013. Key motivations for cross-border M&A include growth, synergy, enhanced profitability, increased market power, access to technology, and global competitiveness. The paper also discusses the challenges associated with cross-border transactions, such as regulatory compliance, cultural differences, and due diligence complexities. The findings underscore the importance of cross-border M&A as a strategic tool for companies seeking to expand their global footprint and adapt to the dynamics of international markets.
KEY WORDS- merger and acquisition, organization, companies, NCLT, law.
Introduction
Mergers and acquisitions are key tool for corporate restructuring worldwide to address the challenges of globalization. The current wave of M&A is characterized by a significant number of cross border transactions[1]. M&A has been prevalent in developed economies for a long time, but it gained popularity in India after the government’s liberalization policies in 1991. In this way the company’s act 2013 was passed. The 2013 act introduces practical reforms for M&A, making the process easier, faster and cleaner for companies. Few highlights include: the National Company Law Tribunal (NCLT) which will hear and decide on M&A proposals, reducing the likelihood of the objections and facilitating wider participation of shareholders via postal ballot approval. In addition to these more innovations and simple methods, M&A[2]
[1] Beena Saraswathy “Cross-Border Mergers and Acquisitions in India; Extent, Nature and Structure”. July 2010 www.cds.edu.
[2] Dr. G.K. Kapoor and Sanjoy Dhamija COMPANY LAW AND PRACTICE, Taxmann Publication(P) Ltd. 20th edn p-3