New Delhi: The US has asked India to remove a rule in its competition law that requires foreign companies to obtain government approval for mergers and acquisitions (M&As).
In a report submitted to the US Congress, the US trade department said it has taken up the issue with the Indian government to change the new regulation.
In September 2007, the Indian government had introduced new merger control amendments to its Competition Act. The M&A provisions, once notified, will require foreign companies, including those with limited access to Indian markets, to seek approvals from India’s Competition Commission for M&As made anywhere in the world.
Under the new law, a waiting period of 210 days would be imposed before a transaction could take place, even if it would have little or no impact on business within India. “If enacted, a broad swath of global mergers and acquisitions will be potentially caught up in this new law,” the report said.