Globalization and Mergers in India

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Globalization and Mergers

The extent to which cross border mergers and acquisitions are growing are all due to the globalization process. It has been observed of late that there are several sectors of the economy that are heating up with a number of cross border mergers and global alliances. This is only to improve the economic state of the country.

Globalization and mergers in India has only helped in improving the economic state. The automobile sector, steel, cement, pharmaceutical, petrochemical, and many more sectors have only experienced successful mergers with overseas companies in India. These global associations have brought them an array of success which has created a brand value in the market. The sector which rules the merger scenario in India and is a result of the globalization process is the automobile sector. The mergers of Maruti Udyog Pvt Ltd and Tata Motors in India have led this sector to a booming path.

Countries that are seeking mergers in India for enhancing the trade scenario are Canada, Holland, Belgium, Italy, Sweden, Norway, Poland, Germany, Spain and the United Kingdom. Globalization and mergers in India is an important standpoint of any corporate executive on every detail of mergers and acquisitions implemented around the world. Mergers in India may include mergers, joint ventures, acquisitions, takeovers, and other kinds of cross-border transactions. The trends and growth of mergers and acquisition dealings has led to a noticeable increase in the globalization and mergers in India.

Globalization and mergers in India have been massively advantageous for all sectors across India and this has increased the global market efficiency.

The relation between globalization and mergers in India are quite noteworthy. The important elements of Indian mergers for globalization can be cited as follows:

  1. M&A is a good growth strategy in context of globalization – Corporates in India have been experiencing a surge in the revenue growth due to cross border mergers and the figures are only to go up more.

  2. Most Indian companies have a clear M&A strategy – the market strategy is clear for most corporates. That is why when finalizing a deal, there arises no confusion.

  3. Top M&A markets – The top M&A markets are US, India and UK.

Future of Globalization and Mergers in India

Companies usually choose the growing through the M&A route, rather than going in for an organic growth strategy due to a lot of added advantages. The inclination towards globalization and expanding through mergers and acquisitions is a rising phenomenon nowadays.

Finally, the globalization trend has set in. As companies plan to expand their territory, global expansion is what they aim at. And this is where the marriage of two overseas companies gives rise to the concept of globalization.

There have been instances where cross-border M&As have proved to have reaped unsatisfactory results. Considering a lot of external factors like corporate governance, political factors, countries involved, and regulatory norms can actually lead the company towards the success path. This is why the mergers in India have seen a considerable surge.

Corporate Globalization | Maruti Udyog Ltd | Fiat Cars in India | Tata Motors | ANG Auto

Last Updated on 5/18/2011