Inbound And Outbound Mergers

A merger that happens between two companies across borders is called a cross-border merger. With economies getting globalised, the concept of cross-border mergers is increasing significantly. It allows the expansion of companies globally. If India is to be placed on the global commercial map, a solid legal framework for cross-border mergers is required. This is the rationale behind the introduction of Section 234 of the Companies Act, 2013. The need for a cross-border merger stems from the desire for economic growth and scale economies.

Section 234 of the Companies Act, 2013 which was brought into effect from 13th April 2017, provides for the legal framework and hence, operationalising the concept of cross-border mergers.