WHY FOXCONN-VEDANTA DEAL DID NOT WORK OUT

a major Taiwanese multinational electronics contract manufacturer, and Vedanta, an Indian natural resources conglomerate, encountered significant obstacles that prevented its successful execution.
Economic Uncertainty: The global economic landscape, particularly in 2019, was marked by uncertainty and trade tensions between major economies, including the United States and China. These tensions had a ripple effect on international business deals, making investors cautious.
Regulatory Hurdles: India’s regulatory environment for foreign investments is often perceived as complex and bureaucratic. The deal would have required approval from Indian authorities, and navigating the regulatory landscape proved challenging.
Source:- the week
Disagreements Over Terms: Foxconn and Vedanta may have faced disagreements over the terms of the joint venture, including ownership shares, investment commitments, and decision-making power, which are common stumbling blocks in such deals.
Source:-india todayMarket Volatility: The electronics industry, in which Foxconn is a key player, experienced market volatility, influenced by factors such as shifting consumer preferences, technological disruptions, and changing trade dynamics.
Environmental Concerns: Vedanta’s involvement in the mining and metals sector has faced scrutiny for environmental and social responsibility issues. This could have raised concerns among investors, affecting the deal’s viability.
Management Changes: Leadership changes within both companies may have impacted the deal’s progress, as new executives often bring different strategies and priorities.
In the end, the confluence of these factors contributed to the Foxconn-Vedanta deal not coming to fruition. Deals of this magnitude often require extensive negotiations, significant capital commitments, and a favorable economic and regulatory environment, and when any of these elements falter, it can lead to the collapse of the partnership
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