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ARTICLE · 19 NOVEMBER 2024

Part II: Deal Value Trigger And CCI Approval – How Does It Affect Dealmaking?

CCI has notified a new filing trigger linked to deal value – a numerical threshold of over INR 2000 crore + substantial business operations in India test

IndiaCorporate/Commercial Law

Key Takeaways

  • CCI has notified a new filing trigger linked to deal value – a numerical threshold of over INR 2000 crore + substantial business operations in India test
  • If breached, a CCI filing will be required even if the de-minimis exemption is applicable. Other exemptions continue to apply
  • DVT provisions have thrown up a fresh set of questions for deal makers. We examine:
  • If offline businesses with digital presence are likely to get caught
  • Fate of covenants like non-competes to determine the value of the transaction
  • Relevance of 'Gross Merchandise Value' for non-digital sectors – a metric to determine substantial business operations
  • What will be viewed as 'inter-connected' transactions in the context of DVT

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