INSUBCONTINENT EXCLUSIVE:
Illustration: Binay Sinha3 min read Last Updated : Sep 10 2024 | 5:54 PM IST
Increasing the ambit of companies that would now be
Companies with a turnover of more than Rs 500 crore or over 10 per cent of global turnover in India in the preceding financial year would be
To determine the value of the deal, the CCI will look at all forms of consideration for a period of two years prior to the
transaction.
Before this, the CCI would consider only asset and turnover as the criteria for the requirement of approvals for mergers and
By bringing the deal value threshold within the ambit of the Competition Act, the government has tried to capture mergers that may otherwise
deal value, the regulations require mandatory notification if the target has substantial business operations in India
This new test will capture many more transactions within the net, as the de minimis target-based exemption will not be available where the
regulations have come a day after the Ministry of Corporate Affairs notified the provisions of the law, which come into effect from
Experts said that the regulations mean companies would need to do an urgent re-assessment of transactions signed or approved prior to
revised the exemptions available to companies from notifying mergers, which may become inapplicable in certain cases
For instance, the exemption available for minority share acquisitions would not be applicable if it gives the right or ability to access
commercially sensitive information.
The anti-competition watchdog has notified that the overall deal review timelines will be shortened to
150 calendar days from 210 days earlier, with a deemed automatic approval if the CCI is unable to form a prima facie view in the first 30
implications of these changes on any ongoing or proposed transactions
Economic Laws Practice.First Published: Sep 10 2024 | 5:47 PMIST
