Role of Competition Law in Regulating Merger

An entrepreneur may grow its business either by internal expansion or by external expansion. In the case of internal expansion, a firm grows gradually over time in the normal course of the business through acquisition of new assets, replacement of the technologically obsolete equipments and the establishments of new lines of products. But in external expansion, a firm acquires a running business and grows overnight through corporate combination's. These combination's are in the form of merger, acquisitions, amalgamation and takeover and have now become an important feature of corporate restructuring. They have been playing an important role in the external growth of a number of leading companies all over the world. They have become popular because of the enhanced competition, breaking of trade barriers, free flow of capital across countries and globalization of businesses in the wake of economic reforms; Indian industries have also started restructuring their operations around their core business activities through acquisitions and takeovers because of their increasing exposure to competition both domestically and internationally. So here the article is seeking to find out different laws and regulations for regulating merger within Indian jurisdiction along with other jurisdictions