Merger and Acquisitions in India and in the World: A Trend Analysis and Future Forecasting.

Abstract

Corporate restructuring through Merger and Acquisitions has become a major weapon for the corporate houses throughout the world to fight with intense competition posed by Globalization. The pace of this type of activity has further got oxygen with deregulation of various types of restrictive laws by Govt. in various times. In India after 1991 after liberalization of Indian economy, vigorous reforms in Indian corporate sector has taken places which has changed the outlook to view competition and also forced the firms to consolidate their positions in their respective areas of operations through Merger and Acquisitions. Merger and Acquisitions has been considered as the most effective form of corporate restructuring than other forms like, joint venture, strategic alliance, divestment etc. Merger and acquisition (M&A) activities have increased rapidly since 2000. Historically, M&As have shown a cyclical pattern. There have been six waves of M&As for the past 100 years; these are those of the early 1900s, 1920s, 1960s, 1980s, 1990s, and 2000s.The trends of mergers and acquisitions in India have changed over the years. The immediate effects of the mergers and acquisitions have also been diverse across the various sectors of the Indian economy.