Integration Between ESG And Merger And Acquisition Transaction
- YourLawArticle
- 2 days ago
- 2 min read
Authored by:Ritu Agarwal, B.B.A.LL.B, United World School of Law, Karnavati University
&
Dr.Mayura Sabne, Assistant Professor of Law, United World School of Law, Karnavati University
Abstract
Mergers and acquisitions (M&A) all across the world have been profoundly affected by the increasing relevance of Environmental, Social, and Governance (ESG) elements in the business environment. Focusing on the developing legislative framework and the pragmatic difficulties in including ESG concerns into M&A operations, this dissertation investigates the complex interaction between ESG ideas and M&A transactions. Starting with the development of ESG ideas and their applicability in the Indian setting, the paper highlights the part Indian company law and the Securities and Exchange Board of India (SEBI) structure play in encouraging ESG compliance and governance. The study explores even more the difficulties in applying ESG policies, especially with regard to jurisdictional problems and regulatory compliance.
From due diligence to post-acquisition integration, the dissertation's central concentration is on how ESG elements affect M&A transactions. Examining the relevance of ESG factors in M&A helps the research underline the requirement of thorough due diligence evaluating not only financial performance but also social and environmental effects. Furthermore, covered are the difficulties in implementing ESG policies following a merger and recommended practices to guarantee ethical and environmental corporate behaviour. The dissertation offers case studies of significant M&A deals, like Unilever's purchase of Seventh Generation and Bayer's acquisition of Monsanto, therefore offering pragmatic insights on how ESG factors affected the results. It also emphasizes effective post-acquisition integration techniques and the possible hazards of ignoring ESG elements. Emphasizing the need of a strong legal framework and aggressive corporate governance procedures to support long-term sustainability and stakeholder value, the dissertation ends with significant results and recommendations for enhancing ESG integration in M&A.
Keywords: Environment Social Governance (ESG), Mergers & Acquisitions, Due-Diligence, Integration, Corporate Governance, Post-Merger Integration
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