Essay about Mergers and Acquisitions

3931 Words Jun 1st, 2014 16 Pages
Mergers and Acquisitions by MNEs: Patterns and Implications Author(s): Nagesh Kumar Source: Economic and Political Weekly, Vol. 35, No. 32 (Aug. 5-11, 2000), pp. 2851-2858 Published by: Economic and Political Weekly Stable URL: http://www.jstor.org/stable/4409593 . Accessed: 20/05/2014 04:19
Your use of the JSTOR archive indicates your acceptance of the Terms & Conditions of Use, available at . http://www.jstor.org/page/info/about/policies/terms.jsp

.
JSTOR is a not-for-profit service that helps scholars, researchers, and students discover, use, and build upon a wide range of content in a trusted digital archive. We use information technology and tools to increase productivity and facilitate new forms of scholarship. For more
…show more content…
The developmental implications of this trend need to be examined. This papermakes an exploratory attempt to map the recent M and A activity in the Indian corporate sector associated with foreign multinational enterprises (MNEs) andtheirIndianaffiliates. That is attempted with the help of an exclusive database built-upby us thatcovers most of the deals associated with MNEs in India for the period April 1993.to mid-February 2000. This databasehelps to examine the industrial composition of the deals as well as their motives. The structure of the paper is as follows. Section I briefly summarises the policy frameworkgoverning M and A activity. Section II examines the emerging patterns and motives of MNE related M and As in India. Section III discusses implications of the MNE related M and As for various parameters of development. Section IV concludes the paper with some remarks for policy.

Policy Framework
The policy and regulatory framework governing the M and As has evolved over the 1990s. Before 1990, an open offer was

mandatory for acquiring 25 per cent stake in a company. In 1990, this threshold was reduced to 10 per cent of a company's capital. However, in case of MNE related acquisitions, provisions of the Foreign Exchange Regulation Act, 1973 (FERA) also

Related Documents