Apprehensions remain on regulations front: Experts

NEW DELHI: The scenario for merger and acquisitions in the country is looking good even though there are some apprehensions among investors about the impact of new laws coming into force, feel experts.

Former chairman of fair trade regulator Competition Commission of India (CCI) Dhanendra Kumar said that despite global uncertainties, cross border M&A deals are likely to rise this year due to easy availability and low cost of debt capital in the international market.

Global consultancy KPMG's Partner (Global International Corporate and M&A Tax) Manish Kapur said that M&A scenario looks attractive but there are "some apprehensions" among investors about regulations such as those related to GAAR and transfer pricing.

The new Companies Bill has also proposed many new rules, he added.

They were participating in a conference organised by industry body Assocham on 'Value Creation through Mergers & Acquisitions' here today.

Meanwhile, both said that even in times of economic downturn, companies managed to create value for their shareholders through M&A.

"... companies have been pursuing M&As as well as other forms of corporate and financial restructuring as their key long term value drivers," Kapur said.

Assocham M&A Council's Chairman Pavan Kumar Vijay said that mergers and acquisitions have always been used as an effective tool for dealing with various operational and financial risks that are faced by corporates.