MCA Extends Validity Of Exemption Notification Concerning Certain Combinations

Recently, the Ministry of Corporate Affairs (MCA) has issued a notification dated 16 March 2022 extending the validity period of exemption granted to certain combinations (like mergers and acquisitions) from compliance rigor of the Competition Act, 2002 (such as giving notice of combination and seeking pre-approval of Commission on proposed combination).

The Competition Act, 2002 required that all merger and acquisition transactions wherein the cumulative value of assets/turnover of the parties jointly exceed the notified thresholds to seek pre-approval of the Competition Commission of India, unless expressly exempted.

Resultantly, even if a transaction that entails the acquisition or transfer of a comparatively small enterprise/business may attract the Competition Commission of India (CCI) scrutiny if the acquirer's financials alone meet the notification thresholds.