Cross Border Mergers And Acquisition – Case Studies

Abstract

Today, the Indian corporate sector has transformed its functions and activities through venous types of consolidation strategies such as acquisitions and mergers to overcome the various issues and challenges arrived due to liberalization and globalization, which has caused for the integration of domestic and international markets. Now a day’s mergers and acquisitions are followed by several organizations from all sectors like-Information Technology pharmaceutical, Banding, Telecommunication, manufacturing and other service providing organizations. Mergers and acquisition process also helps to improve competitiveness of organization by going major market share, brooding the portfolio to reduce risks in business and helps for easy entering in the now markets at domestic as well as international levels. Mergers and acquisition are now considered as the major force in the transforming economic and business environment. The existence of liberalization and globalization has exponentially caused for growth of cross border mergers and acquisitions all over the world. On the basis of some survey studies it is found that involvement of Indian organisation in the cross border mergers and acquisition are increasing at a good rate. Only Tata group of companies leading that chart with more than fifty cross border acquisitions. Not only Tata group of industries there are some other organisations from all sectors such as Reliance, Wipro, Infosys, Mahindra etc. almost all the Indian prominent organisations, business houses are registered themselves in the list of cross border mergers and acquisitions in their respective domain fields of business. It is surprising fact that, the Indian organisations are having acquisitions in USA,UK and some other countries in Europe. The growth in cross border mergers and acquisitions has been active during last decade and it has become significant mode for the Indian organisations who are seeking expansion in foreign markets and wanted to acquire competitive advantage in the complex global context. Along with the growth in organisational consolidation, globalisation and liberalisation of economy cross border mergers and acquisitions are become a popular strategy for the organisations who wants to achieve their business objectives.

                The process of mergers and acquisitions is followed by the Indian organisations for the purpose of corporate restructuring procedure in the current financial and economic situations. Every organisations from every sector acknowledge process for their quick growth, development and improvement in developed countries like USA, UK, JAPAN, and European countries, mergers and acquisitions is take place. In India also mergers and acquisitions have now become an integral part of corporate strategies. In India, mergers and acquisitions is often followed due to some reasons which have been discussed in the present chapter. Apart from this through the present chapter researcher has also attempted to focus on some important cases of cross border mergers or acquisitions during the last two decades.