In the modern world, changes take place every moment and
business houses face difficulties of various sorts. This often
leads to corporate restructuring by recourse to options such as
mergers and acquisitions. The bigger sharks in the industry try to
engulf the smaller entities creating a huge impact in the
market.
India is witnessing number of takeovers. A recent one being the
acquisition of Flipkart by Walmart via a $16 billion deal and
acquisition of 77% stakes on August 18, 2018. The said transaction
has been approved by the Competition Commission of India, being in
conformity with the provisions of the Competition Act, 2002.
However, this takeover has been opposed by the Confederation of
All India Traders (hereinafter referred to as "CAIT") and
the Swadeshi Jagran Manch (hereinafter referred to as
"SJM"). The issues being raised include violation of the
Foreign Direct Investment policies and offering of heavy discounts
to customers.
