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Potential outcomes

What are the potential outcomes of the merger investigation? Please include reference to potential remedies, conditions and undertakings.

A merger investigation can have the following outcomes:

  • unconditional approval of the transaction;
  • conditional approval, subject to the parties undertaking certain structural or behavioural remedies; or
  • prohibition of the transaction.

During a Phase I review, the commission typically grants unconditional approval. However, if the commission has potential concerns, the parties can voluntarily offer certain structural or behavioural modifications to alleviate these concerns (Mumbai International Airport Pvt Ltd, IOCL, BPCL, HPCL and Mumbai Aviation Fuel Farm Facility (C-2014/04/164); Abbott Laboratories, USA, (C-2016/08/418) etc).

In a Phase II investigation, the commission will conduct a detailed investigation to determine whether the transaction will have or is likely to have an appreciable adverse effect on competition. If the commission believes that the proposed structure of the transaction presents significant issues, it will consider possible modifications which could substantially address them. Structural remedies are considered more effective than behavioural remedies in addressing such concerns (PVR Limited (C-2015/07/288)).

If the commission is not satisfied with any alternatives, it can issue a prohibition decision blocking the transaction. To date, however, no such decisions have been issued. 

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