Sharon kerketta, Reva University
Globalization has accelerated cross-border mergers and acquisitions over the last three decades emerging since 1990. India is now considered to be the most favored business destination1. A cross-border merger is an amalgamation of two or more business entities situated in different countries mutually agreeing on the terms and conditions to become equal partners in the new venture2. An acquisition comes into place when a company buys another company. Cross- border mergers and acquisitions are therefore defined as the combining of two or more companies that are incorporated in two or more than two countries3. The purchase can be friendly but also hostile at times. Thus, most probably a large company takeover a small company to diversify its business. This urge for mergers and acquisitions was accentuated in the 1990s when the government initiated the policy of liberalization and globalization which has in return resulted in Indian Economy growth and created a highly competitive business environment. Companies were motivated to restructure their corporate strategies by taking advantage of mergers and takeovers4.
