Mergers & Acquisitions
Mergers and Acquisitions
We provide legal advice and assist in the takeover of a business in India by a foreign entity. As part of the takeover process the firm conducts corporate, legal and financial due diligences and advises on the procedures involved in the takeover.
The firm assists in obtaining various legal clearances from various authorities in India that may be required in the process of take over including approvals from Department for Promotion of Industry and Internal Trade (DPIIT), Reserve Bank of India (RBI), Registrar of Companies etc.
Acquisition of an Indian Company by a Foreign Entity
As per the extant law, an existing Indian company can be taken over to the extent of 100% by a foreign company, provided the business carried on by the Indian company does not fall under the prohibited sectors and the shareholding extent is as per the sectoral cap the Foreign Direct Investment Policy of the Government of India.
The business carried on by the Indian company must be under the automatic approval route for a direct process of take over without any prior approvals from a government body. If the business area is not under the automatic approval route, prior permission is required to be obtained from the Government of India.
Mergers
The firm also assists on the advice, procedure and filing of petitions under the Companies Act to facilitate merger of two or more Indian companies.
Under the new Companies Act, 2013, cross border mergers and acquisitions are permitted and the firm advises on these aspects too.
We draft Share Purchase Agreements and Shareholders Agreements necessary for the partial takeovers along with the necessary non-compete and non-disclosure agreements.
The firm also drafts scheme of arrangements for companies to be placed before High Courts.
Besides the above, the firm advises companies on methods of restructuring including, mergers, acquisitions, demerger / spin-off a division into a separate company, buy-back of shares, leveraged buyouts, slump sale, reduction in share capital.
We're Here to Help!
Have questions or need assistance? Our support team is just a message away. Fill out the form and we’ll get back to you as soon as possible.
