India thwarts China’s Hostile Takeover Bids during Covid-19

Abstract

The world today is facing a unique situation in the form of Covid-19 with unique consequences and effects. There is not even a single aspect of the society and economy which is untouched by this pandemic and corporate sector is also one of them. The companies are struggling in terms of finances. The financial crunch being faced by them is making the companies more vulnerable to takeovers/acquisitions. All this situation in the world has brought China in the forefront and as reports are suggesting Beijing has been expanding its economic footprint throughout the world and specially in South Asia. In order to protect the companies in India, our government proactively changed its FDI policy to prevent opportunistic takeover. This move prevents the 7 countries with which India shares its land borders from making any investments in India and also prevents China from making any investments in India through these countries. The aim of this article is to analyse the situation of takeovers and especially hostile takeovers in India. It will also analyse the situation with respect to takeovers before and after Covid-19. Volume 2 – Issue 1 Journal of Multi-Disciplinary Legal Research ISSN: 2582-9947