CCI amends M&A approval regulations
The amended M&A regulations allows parties in a deal to voluntarily suggest changes in the deal structure to address competition issues
New Delhi: Anti-trust watchdog Competition Commission of India (CCI) has amended its regulations to make it easier for corporations to secure approvals for mergers and acquisitions (M&A), an official statement said on Wednesday.
The amended M&A regulations allow parties to a transaction to voluntarily suggest to CCI possible alterations to the deal that may mitigate any adverse impact the combined entity may have on competition in the market.
Competition regulators worldwide, including CCI, suggest changes to M&A deals and approve transactions subject to conditions if they find that certain aspects of the deal may stifle competition in the relevant market.
The Competition Act, 2002, allows businesses to suggest alterations to the original deal structure only after the CCI proposes changes.
According to amended M&A regulations, businesses involved in the deal can “submit remedies voluntarily in response to the notice issued under Section 29(1) of the Act”, said the CCI statement.
This section of the Act deals with commencement of an investigation into the effects of the deal on competition. The move could save time in getting a deal cleared by CCI.
“If such remedies (voluntarily proposed by the parties) are considered sufficient to address the perceived competition harm, the combination can be approved. This amendment is expected to expedite disposal of such combination cases,” said the statement.
The amendments also allow parties to transactions to withdraw their request for approval and file afresh in cases where their original application had significant information gaps. “With this amendment, the parties could address the deficiencies without facing an invalidation by CCI,” said the statement.
- Govt, board eye asset sales to turn IL&FS around in six months
- Jet Airways sets jet sale, leaseback plan in motion to raise $800 mn
- Lenders accept ArcelorMittal resolution plan for Essar Steel
- #MeToo: Publicis India sacks executive creative director Ishrath Nawaz
- IFC launches $1 billion masala bond programme to aid India investments
Editor's Picks »
- Policy rethink and higher volumes to aid container shippers
- DCB Bank delivers a strong Q2 but pressure on margins foreseen
- Havells India: Rising costs give a jolt to profitability in September quarter
- All’s well at Mindtree, except for high client concentration risk
- India’s rising steel demand is making companies starry-eyed