M&As: Govt Notifies Deal Threshold Under Competition Law
By Rediff Money Desk, New Delhi Sep 09, 2024 19:17
India's government has notified new regulations for mergers & acquisitions (M&As) under competition law, requiring companies to seek CCI approval for deals exceeding Rs 2,000 crore involving companies with substantial Indian operations. This move aims to ensure fair business...
New Delhi, Sep 9 (PTI) The government on Monday notified the provisions related to the deal value threshold under the competition law, wherein companies will be compulsorily required to seek the Competition Commission's approval for mergers and acquisitions beyond certain thresholds.
Besides, the clearance of the Competition Commission of India (CCI) will be needed if the target company has substantial business operations in India, according to notifications issued by the corporate affairs ministry.
The latest move will help the fair trade regulator to keep a closer tab on mergers and acquisitions in the digital space.
Vaibhav Choukse, Partner -- Competition Law at JSA -- said that among several provisions that have been notified, one of the most significant is the introduction of an additional deal value criterion for assessing whether an M&A deal requires mandatory approval from CCI.
Under the criterion, "a transaction will require approval of the CCI if the deal value exceeds Rs 2,000 crore and if the target has substantial business operations in India.
"The decision stems from CCI's inability to review several transactions within the digital and other sectors, which were not subject to reporting requirements due to asset or turnover values falling below the jurisdictional thresholds/ target exemption.
CCI, which comes under the corporate affairs ministry, has the mandate to ensure fair business practices in the marketplace.
Besides, the clearance of the Competition Commission of India (CCI) will be needed if the target company has substantial business operations in India, according to notifications issued by the corporate affairs ministry.
The latest move will help the fair trade regulator to keep a closer tab on mergers and acquisitions in the digital space.
Vaibhav Choukse, Partner -- Competition Law at JSA -- said that among several provisions that have been notified, one of the most significant is the introduction of an additional deal value criterion for assessing whether an M&A deal requires mandatory approval from CCI.
Under the criterion, "a transaction will require approval of the CCI if the deal value exceeds Rs 2,000 crore and if the target has substantial business operations in India.
"The decision stems from CCI's inability to review several transactions within the digital and other sectors, which were not subject to reporting requirements due to asset or turnover values falling below the jurisdictional thresholds/ target exemption.
CCI, which comes under the corporate affairs ministry, has the mandate to ensure fair business practices in the marketplace.
Source: PTI
Read More On:
DISCLAIMER - This article is from a syndicated feed. The original source is responsible for accuracy, views & content ownership. Views expressed may not reflect those of rediff.com India Limited.
You May Like To Read
TODAY'S MOST TRADED COMPANIES
- Company Name
- Price
- Volume
- Rhetan TMT
- 15.59 (+ 19.83)
- 31433475
- Srestha Finvest
- 1.79 ( -1.10)
- 29026799
- Spicejet Ltd.
- 71.66 (+ 8.00)
- 28325118
- Rama Steel Tubes
- 16.26 (+ 1.82)
- 21693933
- Vodafone Idea L
- 13.41 ( -0.89)
- 19325317
MORE NEWS
ZF Rane Opens Inflator Facility in Tamil Nadu -...
ZF Rane Automotive India has inaugurated a Rs 100 crore inflator manufacturing facility...
India Extends Incentives for E-commerce Exports
India extends export incentives to e-commerce shipments via courier and postal routes....
Mental Wellness: Key to Employee Well-being -...
Mental wellness is now a core part of employee well-being programmes, with 74% of...