INTERNATIONAL JOURNAL OF ENGINEERING MANAGEMENT AND
SOCIAL SCIENCES

Evidence of Financial Benefits from Indian Cross-Border Mergers and Acquisitions and Their Financial Benefits A Case Study on UPL Limited–Arysta LifeScience Acquisition

This study examines the financial benefits of cross-border mergers and acquisitions (M&A) undertaken by Indian companies, using the acquisition of Arysta LifeScience by UPL Limited, completed in January 2019, as a focused case study. Cross-border M&A has become an important strategy for Indian firms seeking global expansion, access to advanced technology, new markets, and enhanced shareholder value. The study reviews recent evidence on Indian cross-border acquisitions across sectors such as automobiles, information technology, pharmaceuticals, agrochemicals, metals, and telecommunications, and evaluates the extent to which such transactions contribute to shareholder wealth. Economic Value Added (EVA) is used as the primary measure of financial performance to assess whether UPL generated returns exceeding its cost of capital before and after the acquisition. The study is based on secondary data collected from UPL's consolidated financial statements, covering three financial years before the acquisition (FY2015–16 to FY2017–18) and three financial years after the acquisition (FY2019–20 to FY2021–22). The data are analyzed using descriptive statistics, a one-sample t-test, and a paired sample t-test. The results show that while UPL's operating profitability (EBIT) rose substantially after the acquisition, capital employed increased even more sharply due to acquisition-related borrowings, so that average EVA declined in the immediate post-acquisition period; the decline is not statistically significant at the 5% level given the small sample of three years on each side. The findings offer a realistic, evidence-based view of the short-term financial trade-offs of debt-funded cross-border acquisitions of value to investors, financial analysts, corporate managers, and researchers.