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A clear example will be the ongoing merger agreement being entered into by British Airways and Iberial Airlines which aftermath will birth a new corporate identity and image as agreed upon by the parties involved. There are high levels of entry and exit barriers for the investing company. Cross-border mergers and acquisitions: what are the legal issues? Greenfield investors stay for the long term and focus on the growth of the company, along with its profitability. According to Fatemi et al (1988), even though introducing cross border M&A in a near perfect market situation, the owners of the business may not enjoy dividends as per from local operation and this varied valuations for local and international mergers will seek to uncover the imperfect capital market dealings. Free resources to assist you with your university studies! Cross As a result, special skills become necessary. The explanation put forward for this is that bidding bank shareholders need to be compensated for an increased risk of Disadvantages of cross border However, to our knowledge, very little attention has been given to the business evaluation process as an influencing factor. As a result, it is more risky and expensive than Brownfield. Thus FDIs are direct investments while FPIs is an indirect investments. Unlike the US and UK where disclosure in corporate governance is held in high esteem, that of emerging countries is very low. R&H has filed a lawsuit to force Dow to complete its proposed $18.8-billion acquisition of R&H. Additionally, cross-border M&As improve the valuation and productivity of the target firms rivals. Another area worth considering is disclosure policy pertaining to corporate governance. Under FPIs, the investors only extend monetary investments. In cross-border mergers and acquisitions, it is an international practice to employ investment banks as external consultants to communicate with the target. More Evidences from Continental Europe and t Determinants of Cross-Border Mergers and Acquisitions: A Comprehensive Review and Future Direction.