Merger is defined as combination of two or more companies into a single company where one survives and the others lose their corporate existence. The survivor acquires all the assets as well as liabilities of the merged company or companies. Generally, the surviving company is the buyer, which retains its identity, and the extinguished company is the seller. Acquisition in general sense is acquiring the ownership in the property. In the context of business combinations, an acquisition is the purchase by one company of a controlling interest in the share capital of another existing company.
The Mergers & Acquisitions in India has really taken off in. Business environment is dynamic, many elements in the event are changing because of changes in the economic, social, cultural, government and legal factors .Organizations are frequently restructuring their corporate policies to sustain the changed competitions. In this light mergers & acquisitions are one of the corporate restructuring strategies that organizations can adopt.
To opt for a merger or not is a complex affair, especially in terms of the technicalities involved. We have discussed almost all factors that the management may have to look into before going for merger. Decision has to be taken after having discussed the pros & cons of the proposed merger & the impact of the same on the business, administrative costs benefits, addition to shareholders’ value, tax implications including stamp duty and last but not the least also on the employees of the Transferor or Transferee Company.
The present project attempts to study the process involved in Mergers, the advantages and disadvantages of mergers, M&A trends in India, study the performance of RPL after merger with RIL and also reviews the recent trends in Mergers & Acquisitions.