"Cross Border Mergers not only bring benefits but also assume risks". - Briefly comment with specific provision under Companies Act, 2013.

As per section 234(1) of the Companies Act, 2013, the provisions of cross border merger are subject to every other law specifically providing for any restriction. A company may merge with a foreign company incorporated in any of the jurisdictions specified in Annexure B under Rule 25A of the Companies (Compromises, Arrangements and Amalgamations) Rules, 2016 after obtaining prior approval of the Reserve Bank of India and after complying with provisions of sections 230 to 232 of the Companies Act, 2013 and these rules. It is to be ensured that while entering into an outbound merger, it is with a company from one of the specified jurisdictions. Some of the risks associated with cross border mergers are: Taxation: Despite Double Tax Avoidance Agreements, the tax implications in the host countries may prove to be complex and tedious. This may increase the costs as a local professional is required to be hired. Regulatory landscape: The laws and regulations in the host country would be different and may be difficult to comply. An unsuitable regulatory landscape may pose risks to a cross border merger. Political scenario: It is essential to assess the political situation of the country before one enters into a merger with an entity belonging to that country. Unstable political situation may lead to difficulties in carrying out business. Valuation: Valuation is one factor which changes with countries due to changes in exchange rate, stock market transactions and other macroeconomic developments.