Mergers Acquisitions Under The Indian Competition Regime

Realizing that India is one of the fastest growing economy of the world and recognizing that the growth process is driven inter-alia by Mergers & Acquisitions, Indian Competition Act, 2002 regulates 'combinations'. From 1st June, 2011 till 31st March, 2016, the CCI considered 360 cases of combination and none of the transaction was blocked. This shows that the CCI is conscious of the need and usefulness of mergers/ acquisition as a route to enhance size and scope of business for success of business on long term basis. The combination regulation has two compartments namely (i) to determine as to whether the aggregate value of assets/turnover exceeds the threshold prescribed and if so the transaction is mandated to be reported to CCI and it would be a case of gun jumping in case transaction is consummated prior to its approval and (ii) assessment of 'likely appreciable adverse effect on competition in the relevant market in India of proposed transaction keeping in view