Merger and Amalgamation of Companies in India: AN Analysis of Its Impact on Various Stakeholders

In this competitive business world, the companies have to strive hard to achieve the Excellency and to establish themselves in this competitive business market. To gain profit, the companies should grow internally as well as externally. Where internal growth can be achieved by introducing new products and improving the quality of sales, external growth can be achieved through processes of merger, amalgamation, acquisition, takeover, etc. A merger is a contract that combines two or more companies into one with a profit motive.  Again, Amalgamation is a process where two or more companies join together to form a new company. Merger and Amalgamation, though legally somehow a similar term but in real sense both are different.

Though seems easier to be merged and amalgamated with an entity and expand their business there are various issues involved in the merger and amalgamation process. Lack of implementation of framed rules, cultural differences, lack of proper norms, etc stands as a challenge before merger and amalgamation. Moreover, as the stakeholders play a key role in the company business, their protection and implementation of proper rules and regulations for the stakeholder's benefit is the most important task here. Apart from all, the researcher here would focus upon the role of the department of human resource management in the entire process of merger and amalgamation in the companies as they acted as swords for the protection of stakeholders.

Therefore, the researchers here would like to make a comprehensive study on the merger and amalgamation of companies in India and its impact and benefits upon the various stakeholders of the companies as well as the role of human resource management in resolving these issues.