India’s Competition Commission has amended its draft regulations for mergers and acquisitions that it will propose as part of the country’s new competition law. If adopted, the revised regulations would bring significant changes to merger review procedures in India. For example, the revised regulations would reduce the number to transactions that require notification to the Competition Commission by limiting the criteria for notification to those acquisitions of more than 26 percent of the total shares of a company, unless the acquisition would give the acquiring party control of the company. In addition, the draft regulations would require both the acquiring and acquired companies to have at least US$50 million of assets or US$150 million of annual revenues in India before premerger notification is required. Among other significant changes in the revised regulations is a reduction to either 30 or 60 days from the current waiting period of up to 210 days for Competition Commission review.
India’s new competition law is currently awaiting approval by President Pratibha Patil. If approved, the law is expected to go into effect in Fall 2008 – one year after being ratified by India’s parliament.