Indian Mergers and Acquisitions: Environmental Analysis in Current Competitive Business Environment Bharara Vikas, Latwal Gopal Singh IITM, New Delhi Online published on 27 July, 2015. Abstract Since the advent of globalization and new economic policies where in government has become liberal in terms of economic activities, this leads to privatization, commercialization, modernization and paving way for rational and optimal use of resources. In order to meet the above the companies have adopted economic appraisal, financial appraisal, project appraisal, leads to merger and acquisitions. Merger is the combination of two companies into a larger company, commonly voluntary and involves stock swap and cash payment to the target. Acquisition is the buying of one company by another, usually a smaller company by a larger one. The trends of mergers and acquisitions in India have changed over the year since economic reforms 1991 inspired by liberalization, privatization and globalization. Favourable government policies, buoyancy in economy, dynamic attitude of Indian entrepreneurs like achieving synergies, to get good market share, cross selling, economies of scale, resource transferring and reducing tax liability are key factors behind the changing trends of mergers and acquisitions. Acquisitions of foreign companies by the Indian businesses have been the latest trend in the Indian corporate sector. With the increasing numbers of Indian companies opting for mergers and acquisitions that generates efficiency, productivity, cost saving, etc. India is now one of the leading nations in the world in terms of mergers and acquisitions. Different sectors like telecom, finance, FMCG, construction material, automobile industry and steel industry have resorted to mergers and acquisitions in recent times. The paper will examines the emerging trends of various companies based on published data. The paper would also reveal trends, progress, successful implementation, reasons of failure and legal framework relating to mergers and acquisitions. Top Keywords Mergers, Acquisitions, Takeovers, Global Competitiveness, Types, Trend and Strategies, Motives and Legal Framework. Top |