Abstract:
Cross-border mergers and acquisitions are seen as a bridge between Indian businesses and the global economy. They open doors for investment, technology transfer, and market access. At the same time, they raise legal challenges linked to approvals, compliance with multiple laws, taxation, and protection of stakeholders. Differences in legal systems and enforcement across countries make the process even more complicated. This paper explores these challenges in the Indian context and examines how the legal framework is evolving to support such international business transactions.
Introduction:
Cross-border mergers and acquisitions (M&A) are transactions where a company from one country acquires, merges with, or invests in a company in another country, often driven by a strategy to expand into new markets, access foreign technology, diversify products, and gain competitive advantages. Cross-border mergers and acquisitions are significant as they encourage foreign investment, open access to international markets, enable technology transfer, and allow companies to expand beyond domestic boundaries. In the Indian context, they contribute to economic growth by strengthening industries, generating employment, and improving global competitiveness. At the same time, these transactions involve complex legal and regulatory aspects relating to corporate law, foreign exchange, taxation, and dispute resolution. Therefore, studying cross-border M&As is highly relevant, as it helps in identifying shortcomings in the legal system, enhances investor trust, and supports policymakers in making India a more business-friendly destination. Most writings on mergers and acquisitions in India focus on finance, management, or investment benefits, but the legal challenges of cross-border deals have not been explored in detail. Limited studies look at how different laws like the Companies Act, FEMA, SEBI rules, and competition law work together and create barriers.This shows the need for a study that reviews these legal issues and suggests reforms to strengthen India’s framework for cross-border mergers and acquisitions.