Cross-Border M&As Driving Fdi | California State University, Northridge

University:
California State University, Northridge
Course:
BUS 104 | Introduction to Business
Academic year:

2023
Views:

387

Pages:

1
Author:

JJIssac

CROSS-BORDER M&A’S DRIVING FDI In recent decades, cross-border mergers and acquisitions have powered global foreign investment like nothing else. By the late 90s and 2000s, mega-deals accounted for over 75% and sometimes up to 80% of total annual FDI inflows. M&As let companies swiftly gain assets, skills and brands abroad through purchases. But integrating newly acquired operations also poses challenges post-deal. Industry M&As Restructuring Through We've seen rising consolidation among major multinational corporations result in an ever smaller pool of industry leaders. Pharma, auto, telecom and finance have all witnessed waves of mergers reducing competitor counts. This triggers other big players to similarly bulk up through acquisitions or strategic combinations. Entire structures change as blocs replace loose oligopolies and monopolies. M&A Trends in India Liberalization and policy reforms opened India to cross-border M&A activity. Foreign firms now use purchases as one pathway for market entry and competitive moves here. Domesticplayers too have embarked on overseas acquisitions for resources, regional access, brands and accompanying restructuring. Deals cut across manufacturing as well as services like IT and pharma. Wider M&A Drivers Deeper deregulation internationally ignited the M&A boom from the late 80s. Technology also allowed complex integration of dispersed operations. Profitability and soaring stock prices created funds for major deals. Management by merging emerged as a strategy for addressing new competitive landscapes created by globalization. So while business cycles still impact dealmaking, the proliferation of large corporations appears structural in many industries following the merger revolution.