Allows 'outbound' mergers

On 13 April 2017, the Ministry of Corporate Affairs notified the 'Companies (Compromises, Arrangements and Amalgamations) Amendment Rules, 2017', allowing an Indian company to merge with a foreign company abroad. Previously, it was only possible for an Indian company to get merged with a foreign company in India (i.e. 'inbound' mergers). Such inbound mergers would still need prior approval of the Reserve Bank of India. For outbound mergers, there are some other criteria that have to be met, such as that the foreign jurisdiction has deficiencies as regards anti-money laundering or combating the financing of terrorism.

• Type:

  • Entry and establishment (Other)
  • Treatment and operation (Competition policy)

• Industry:

  • Not industry specific

• Sources:

  • The Gazette of India, MINISTRY OF CORPORATE AFFAIRS NOTIFICATION, PART II, Section 3, Sub-section (i) vide number G.S.R. 368(E), http://www.mca.gov.in/Ministry/pdf/CompaniesCompromises_14042017.pdf, 13 Apr 2017
  • Ernst & Young, India issues cross-border merger provisions, http://www.ey.com/gl/en/services/tax/international-tax/alert--india-issues-cross-border-merger-provisions, 03 May 2017
  • Bloomberg (Quint), India Paves The Way For Cross-Border Mergers, https://www.bloombergquint.com/opinion/2017/04/18/india-paves-the-way-for-cross-border-mergers, 18 Apr 2017