Tuesday, December 06, 2016

Competition Law and Role of merger

Competition Law and Role of merger

Aviation sector is one amongst the least researched sectors in India because it has restricted range of players. However, because the sector is growing quickly, it becomes essential to possess knowledge about the sector and the activities that are happening within the sector. Mergers and Acquisitions in aviation sector has become the most popular topic within the trade, last as a results of increasing cost pressures. These mergers and acquisitions became highly strategic involving many concerns. The dynamic growth and potential in the Indian aviation sector may be gauged from the statement of the EX- civil aviation minister of India in 2004, Mr. Praful Patel - “India’s civil aviation industry will attract investments worth more than US$150 billion in the next ten years.”

The aviation market in India has the market adult very rapidly, however the trade has seen, M&A, the entry of variety of latest carriers with aggressive pricing policies and vital additions of capacity resulting in cut-throat competition. The airlines industry is noisy with news of mergers and acquisitions. within the previous couple of years airline mergers and acquisitions are a growing trend in many countries across the world. it's extremely strategic in nature and square measure undertaken once taking into thought many vital factors.

The finding of this study shows that there's no improvement in surviving Company’s come back on equity, net profit margin, interest coverage, earning per share and dividend per share post-merger & Acquisition. To conduct a homogenous analysis and reach an correct conclusion, it's restricted analysis to solely Indian firms.

This paper makes an endeavor to administer a short summary to comprehensively trot out the Aviation industry in India and M&A within the aviation sector in comparative with Anti-Competitive measures and mergers lead to concentrated markets, antitrust policies must balance these conflicting needs when deciding whether to approve a merger or not?
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