A Study on Challenges in Cross Border Merger and Acquisition vis-a-vis Daiichi-Ranbaxy-Fortis healthcare deal

In India, incidences of cross-border mergers and acquisitions have significantly increased over the past three decades. When it came to cross-border transactions, the Indian economy was not particularly friendly, either before or after independence. In terms of these transactions, India has experienced a huge transformation especially with the introduction of liberalization policy in 1991, which has opened doors of Indian economy for the rest of the world. It is currently one of the most often used restructuring methods worldwide as it comes with various advantages for foreign countries and host country as well. These days, all countries in the world—not just India—have a substantial interest in executing cross-border deals. But, in India, even with so many groundbreaking regulations, such as the Foreign Exchange Management Act of 1999, Sec 234 of The Companies Act, 2013, Cross Border merger rules, considerable criticism to these deals still arises from the restricted government policies, inadequate due diligence, taxation issues, complex legal procedures and many more. In this paper, the author has examined the history and evolution of cross-border regulations and cases. It mostly focused on difficulties arosed from the inadequate due diligence from these deals. The author has also analyzed well-known cases of inbound merger and acquisitions in India, like the Daichi -Ranbaxy- Sun Pharma and Fortis- IHH Berhad, Malaysia deal. It additionally addresses the lessons learned by India from the past deals as well as potential solutions for it.