Introduction
The Indian merger control regime is governed by the Competition Act 2002 (Competition Act), the Competition Commission of India (Procedure in regard to the transaction of business relating to combinations) Regulations, 2011 (as amended) (Combination Regulations), and notifications issued by the Government of India (GoI) from time to time. The Competition Commission of India (CCI) carries out an ex-ante review of transactions proposed to be undertaken to ensure that these do not cause an appreciable adverse effect on competition in India (AAEC). The merger control regime in India has been in force for 11 years.
Under Section 6 of the Competition Act, all “combinations” require prior approval of the CCI. A combination means the acquisition of control, shares, voting rights or assets, or a merger or amalgamation exceeding the “thresholds” prescribed under Section 5 of the Competition Act. However, a combination does not require approval of the CCI if it is exempt under the Combination Regulations or any of the GoI notifications. The parties cannot consummate a combination or any part thereof before receipt of CCI approval or until the lapse of 210 days from the date of notification of a combination to the CCI.
Please click here to read the full chapter by Farhad Sorabjee, Vaibhav Choukse, Nripi Jolly, and Faiz Siddiqui published in Chambers Global Practice Guide (Chambers & Partners).
Farhad acts and appears in diverse complex multi-jurisdictional national and international commercial arbitrations and disputes involving tortious and contractual aspects of civil law.