Legal Issues concerning Indian Companies Mergers & Acquisitions abroad
Supervisor Ravin Galgotia
Mrs. Vijaishree Pandey A3221509049
India is expected to be the largest world economy after the United States of America and China. The major corporations in India have largely been focusing on utilizing most of their resources domestically. During the 1970-80’s Indian companies centered their business around domestic markets and little export activity with other developing nations. It was only post the economic liberalization era, in the 1990’s that outward foreign direct investment seemed viable, where the legal reforms helped shape outward M&A (Mergers & Acquisitions) in terms of transaction structure and size. Indian firms have now reached a level that they are able to compete with corporations at an international level. It’s safe to say that international activity by Indian firms is a well-documented item in business news.
Rise in Indian Outbound M&A
The most considerable moves in the M&A spectrum were observed starting from the mid 2000’s. Some of the major ones would be when Tata Motors bought over the Jaguar and Land Rover marks from Ford in 2008, which was in talks for the preceding several years and acquisitioned for 2.3 billion US Dollars. The Tata and Birla group have been major players in the international M&A scene and other examples of high profile mergers or acquisitions include Tata Tea’s acquisition of Tetley Tea, Tata Steel’s acquisition of Corus for $12 billion, Hidalcos acquisition of Novelis, a world leader in the production of aluminum rolled products. Sparing no cents, the major Indian corporations are touching the multi million and multi billion dollar marks to acquire. As the recent Bharti Airtel acquisition of Zain Africa and expanding their spectrum to 15 new African countries, Ashok Lalwani, Chair of...