March 5, 2011
Big Changes in India's Merger Control Regime
Posted by D. Daniel Sokol
I received an email from Indian competition law specialist Pallavi Shroff (Amarchand Mangaldas) late last night. She mentioned the following important development:
The Government of India late last night issued a notification bringing into force the merger control provisions under the Competition Act, 2002, with effect from 1 June 2011.
The Government also issued additional notifications which significantly alter the
merger control provisions:
(1) The merger notification thresholds have been revised upwards by 50%;
(2) Mergers where the target company being acquired has assets worth less than INR 250 crores (approximately USD 55.7 million) or a turnover of less than INR 750 crores (approximately USD 167 million) have been exempted from the merger notification requirement for an initial period of 5 years; and
(3) Recognizing the wide definition of a “group” under the Competition Act, the notification exempts a “group” exercising less than 50% in a target company from the merger notification requirement for an initial period of 5 years. Please note, the definition of “group” has not been amended.
I am sure there will be more developments and analysis soon.
March 5, 2011 | Permalink
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It has been an uphill task in getting the merger regulations notified and we at CUTS are all very pleased.
Now the onus lies on the Competition Commission of India to be a credible regulator. Any slips can cause return of the resistance from the ill-informed business community.
Posted by: Pradeep S Mehta | Mar 5, 2011 11:55:10 PM