Mergers and Acquisitions Trends – The Indian Experience

Abstract

This paper measures the mergers and acquisitions sector of India from 1991 to 2010 with the help of time-series data along with major recent worldwide developments. The time series analysis makes clear the trend in mergers and acquisitions activity in India and is categorized broadly three ways, namely, the era of consolidation (1991 – 1995), the era of foreign acquisitions (1995 – 2002) and the era of venturing abroad (2002 – 2012). It is valuable to take note of the impact of recent changes in the economic, political and social environment of the world in different sectors and sub-sectors of the economy. Mergers and acquisitions is the sector which is highly elastic in its behavior with respect to changes of government policies and political factors. This paper also categorizes trends in manufacturing and non-manufacturing sectors to provide definite evidence for motives and reasons behind the particular behavior observed, and the prospective future of mergers and acquisitions activity in India.