Evolution Of Cross Border Mergers And Acquisitions In India And Its Compliance With The Competition Act, 2002: A Basic Understanding
- IJLLR Journal
- Apr 21
- 1 min read
Updated: Apr 29
Chirag R. Patil, B.B.A.L.L.B (Hons), University of Mumbai Law Academy, Mumbai, Maharashtra.
ABSTRACT
Over the past decade, globalization, privatization, and liberalization have significantly influenced economic strategies worldwide. In response, collaborations and strategic alliances especially mergers and acquisitions (M&A) have emerged as key tools for businesses to scale and compete effectively. Mergers typically involve the unification of two entities into one to enhance competitive positioning, while acquisitions refer to one company acquiring a significant stake in another to gain market leverage. These strategies allow firms to achieve operational efficiency, economies of scale, and strategic growth.
In India, the M&A’s landscape began to evolve in the early 1990s, gaining traction post-liberalization in 1999. Although there was a decline in the late 2000s due to the global financial crisis, M&A activities saw a resurgence after 2010 and have generally maintained a positive trajectory until 2025 despite a dip in 2023 due to lingering post-pandemic effects. Recently, there has been a growing trend toward cross-border M&A (CBMA), prompting a need to examine the regulatory framework governing such transactions. This paper offers a foundational understanding of M&A practices in India, the legal provisions applicable to CBMA, associated challenges, and competition-related issues under the Competition Act, 2002.
Keywords: Mergers and Acquisitions (M&A), Cross-Border M&A (CBMA), Competition Act, Foreign Direct Investment (FDI), Competition Commission of India (CCI)
