Merger motives, trends and post merger performance: evidence from electricity companies in india

Mergers and acquisitions (M&A) in India are the outcome of globalisation and liberalisation. The factors that have triggered the volume of M&A are various economic factors like competitive environment, growth in gross domestic product, higher interest rates and fiscal policies. Mergers and acquisitions have gained significance in corporate world as an important growth strategy for both acquirer and target companies. M&A have mushroomed in almost all sectors like manufacturing, mining, construction sector, financial services, and services other than financial. M&A has also played an active role in electricity sector in India. In this paper we explore the current scenario of M&A in Electricity sector and the factors driving the M&A. In particular, we investigated related and unrelated M&A deals, Public & Private companies gone for deal, year wise deals, and group affiliation deals in electricity sector. We also focused on regulatory aspect of M&A in electricity sector. The period of study is from 1st January 1990 to 31st December 2011. Our finding suggest that M&A in electricity is highly regulated and thus deals are made to survive in this regulated environment even though much deals are not done if compared to other sectors.

Electricity ,

Merger Motives ,

Post Merger Performance ,

Mergers and Acquisitions ,