A STUDY ON SECTORAL AND GEOGRAPHICAL TREND IN CROSS BORDER MERGERS IN INDIA

Abstract

Cross-border Mergers are among the fundamental mechanisms of industrial globalization. This paper aims to increase understanding of the developing patterns of inbound and outbound mergers, the driving forces behind the recent surge of cross-border mergers, and their impact on industry and implications of government policies. It reviews the recent trends in cross-border mergers in terms of sectoral and geographical patterns during the period 2019-2022. It analyses that cross-border mergers are the most preferred entry mode for direct investments across countries. The paper further proceeds to identify and understand or explore the geographical and sectoral trend followed by cross-border mergers in India. The final section discusses the potential impacts of cross-border M&As on firm and industry performance and highlights some implications for government policies.

Keywords: Cross-border mergers, inbound mergers, outbound mergers, sectors