Over the last decade, cross-border mergers have accelerated with the globalisation of the world economy. Companies are seeing them as an effective avenue to expand their global footprints. While inbound mergers in India were always permitted under Companies Act, 1956, the new Companies Act, 2013 paved a way for outbound mergers from India.
Against this backdrop, PwC hosted a series of breakfast forums on 'Cross-border mergers: Tax tangle'. The sessions dwelled deep on trigger points under the corporate structures for evaluating cross-border mergers and the tax implications and other issues surrounding the transaction. These were attended and well appreciated by CFOs, M&A leaders and senior tax professionals managing cross-border transactions.
|27 July||Ahmedabad, Bengaluru|
MNCs/foreign corporates can now consider consolidation their Indian operations with the parent/group entities and relish better business synergies and cost efficiencies. The recent roll out of regulatory framework by the RBI brings fresh perspective to cross border consolidation activities, especially the outbound mergers!
Keeping pace with increasing globalisation, the Indian government has taken various crucial steps. The recently introduced regulatory framework for allowing cross-border mergers—both inbound and outbound — tops the list. Cross-border merger is a complex, dynamic and ever-evolving concept. It is still at a nascent stage in India, which further makes it imperative for the government to bring out relevant changes under the judicial system to make it operational and achieve the objective of facilitating re-organisation that transcends borders.
The recent RBI notification on cross-border mergers has paved the way for rationalisation of holding structures by foreign corporates with Indian operations and Indian companies with overseas investments. This also provides a plethora of opportunities to bring in efficiencies and restructure operating models.
National Leader, M&A Tax, PwC India
Tel: +91 22 6689 1255
Partner, M&A Tax (North), PwC India
Tel: +91 124 330 6018
N V Sivakumar
Partner & Leader - Private & Entrepreneurial Business, PwC India
Tel: +91 (80) 4079 7001 | +91 98 4503 0010