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.