Cross Border Mergers and Acquisitions in India Essay

The corporate sector every(prenominal) over the world is restructuring its operations through different types of consolidation strategies ilk mergers and acquisitions in order to face challenges posed by the new name of globalisation. The intensity of such operations is increasing with the de-regulation of various government policies as a facilitator of the neo-liberal economic regime. The intensity of cross-border operations recorded an unprecedented gasp since the mid-1990s and the same trend continues.Earlier, foreign firms were satisfying their market expansion schema through the setting up of wholly owned subsidiaries in overseas markets which has now become a second best filling since it involves more than time and effort that may not suit to the changed global scenario, cross-border mergers and acquisitions became the first-best option to the leaders and others depended on the follow-the-leader strategy. The Indian corporate sector too go through such a boom in merge rs and acquisitions that led restructuring strategies especially aft(prenominal) liberalization, Four types of growth strategies adopted by the firms.Firms started with domestic production and began to trade to the foreign markets, establishment of subsidiaries in overseas market was the next branch and as a fourth phase, firms started to acquire firms in foreign markets kinda of establishing subsidiaries. The increasing magnitude of investment through cross-border mergers and acquisitions and its emergence as a major component of FDI even in the case of developing countries such as India, why firms are engaging in cross-border consolidations instead of establishing subsidiaries or to engage in export-oriented growth.