India’s merger control regime entered into force from June 1, 2011. This means that all transactions that meet the specified thresholds have to be notified to the Competition Commission of India (CCI). There is a “standstill obligation” prohibiting completion until the CCI has issued a clearance decision.
In May 2011, the CCI published the rules applicable to merger review. The new regulations follow a consultation on a draft regulation published in March 2011. This regulation does not differ much from the that draft.
The amendments are as follows:
- Clarification of transactions that do not have to be • notified, such as mergers that take place entirely outside India and would only have an insignificant impact on local markets or certain acquisitions made by way of investments.
- Adoption of a five-year exemption to filing • requirement if the target has domestic assets less than approx. €41 million or US$54.4 million, or domestic turnover less than approx. €123 million or US$163.3 million.
- Simplification of the notification forms.•