Overseas Mergers and Acquisitions by Indian Enterprises: Patterns and Motivations

Pradhan, Jaya Prakash and Abraham, Vinoj (2004): Overseas Mergers and Acquisitions by Indian Enterprises: Patterns and Motivations. Published in: Indian Journal of Economics , Vol. LXXXV, No. 33 (2005): pp. 365-386.

Abstract

This paper examines the patterns and motivations behind the overseas M&As by Indian enterprises. It is found that a large majority of overseas M&As originated within services sector led by software industry and in overwhelming cases were directed towards developed countries of the world economy. The main motivations of Indian firm’s overseas acquisitions have been to access international market, firm-specific intangibles like technology and human skills, benefits from operational synergies, overcome constraints from limited home market growth, and survive in an increasingly competitive business environment. Further it has been found that overseas acquirers in the case of manufacturing sector tends to be large sized and research intensive, while they are older, large sized and export-oriented in the case of software sector.

• Item Type: MPRA Paper
• Language: English
• Keywords: Indian firms; Overseas M&As
• Subjects: L - Industrial Organization > L1 - Market Structure, Firm Strategy, and Market Performance > L13 - Oligopoly and Other Imperfect Markets; G - Financial Economics > G3 - Corporate Finance and Governance > G34 - Mergers ; Acquisitions ; Restructuring ; Corporate Governance; L - Industrial Organization > L2 - Firm Objectives, Organization, and Behavior > L22 - Firm Organization and Market Structure

References

Kumar, N (2000) ‘Mergers and Acquisitions by MNEs: Patterns and Implications’, Economic and Political Weekly, August 5, pp.2851-2858.

Bhoi, B. K. (2000) ‘Mergers and Acquisitions: An Indian Experience’, R.B.I. Occasional Papers, Vol. 21

Pradhan, Jaya Prakash (2003) ‘Outward Foreign Direct Investment from Indian Economy: Recent Trends and Patterns’, CSRD, J.N.U. (mimeo).

UNCTAD (2002) World Investment Report 2002, UN, New York and Geneva.