CROSS-BORDER MERGERS AND ACQUISITIONS: LEGAL CHALLENGES

Abstract

The cross-border mergers and acquisitions have become the weapon of corporate development and the competitive edge in the global economy (Shenoy and Shailashri, 2021). This movement can be covered by the efforts of seeking new markets and technological collaboration and cost-effectiveness. These transactions are complex in terms of legal aspects, which should be understood (Hu et al., 2022). The elevated rate of inter-country MandA in India indicates that it may need to circumvent a braided legal and regulatory landscape which in most scenarios varies widely regarding other countries (Ramesh, 2022). These legal complications will receive much consideration in this chapter and a deeper examination of legal variable, compliance and the issues that companies will be vulnerable to in case they propensity recruit cross-border MandA in and in India will be better recounted in this section. This is also accompanied by the proper analysis of foreign exchange laws, impacts of competition laws and complex legal speech, which strongly reflect on the manner and organization with which one engages in such transactions (Ramesh, 2022). It will also touch on the question of incompatibility of jurisdiction as regards to recognition of foreign judgment, as far as international bankruptcy consideration is concerned (Watters, 2020). It will elaborate more on the issue of the updated environment of data security and control in the online market, which still plays a greater role in the MandA strategy, especially in those industries that run more on technology (Jain and Singh, 2024)(Korff, 2023). The cross-border data transfers and data sovereignty are the orthogonal issues under the stipulations of the legal framework, including the GDPR, which has substantial implications on the international fintech startups, thus they are considered during the process of mergers and acquisitions (AllahRakha, 2023). This also goes in depth of the complexity of intellectual property rights, labor laws and taxation which becomes of primary concern as far as due diligence and integration in the merger is concerned. The author will look into the details of the corporate governance and shareholder protection maximization in the cross-border dealings i.e., how the Indian laws supersede international dealings in protecting the majority views (Gomez, 2020). In the paper, the author will assess the dispute resolution strategies adopted in case of international MandA which involve arbitration and litigation, and compare them based on the Indian legal setting.