Merger and Acquisition in India: Legal Process and Key Considerations
Mergers and acquisitions have become an important part of business growth in India. Companies use M&A transactions to enter new markets, expand their customer base, acquire technology, strengthen their resources or consolidate their position in an industry. At the same time, an M&A transaction is not simply a commercial agreement between two businesses. It involves legal, financial, regulatory and operational considerations that need to be addressed before the transaction is completed. The legal process can vary depending on whether the transaction is structured as a merger, amalgamation, share acquisition, asset acquisition or acquisition of control. Companies must also consider the requirements under the Companies Act, 2013, competition law, securities regulations, tax laws, foreign exchange regulations and sector-specific rules, wherever applicable. What Is a Merger and Acquisition? A merger generally involves two or more companies combining their businesses into one entit...