“Hopefully by early next month the guidelines will be notified,” CCI Chairman Dhanendra Kumar said.
Once notified, the guidelines it will be mandatory and companies must seek the commission’s approval before undertaking any bid for merger or acquisition.
He said the commission had received a large number of suggestions adding “we are studying these suggestions before finalising the regulations.”
From June 1, all large companies would require CCI’s approval before going ahead with merger and acquisitions. The CCI has been empowered to do so with the notification of Sections 5 & 6 of the Competition Act, 2002. As per the Act, only those proposals of merger and acquisition would need the approval of CCI where the companies have combined assets of Rs 1,000 crore or more, or a combined turnover of Rs 3,000 crore or more. The CCI will have to take a prima facie view on proposed merger and acquisition within a month of filing by companies. The Act stipulates that the CCI can take a maximum time limit of 180 days to vet mergers.
“Merger review empowers a competition authority to look into the positive and negative implications of any prospective merger and to identify an appropriate response to suit the society and economy on whole,” he said.
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