Saturday, March 5, 2011
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.