CCI Issues Guidance note on “Non-compete” clause: An Overview

Introduction “Non-compete” obligations are frequently incorporated in M & A transactions to facilitate the effective implementation of a proposed combination. Non-compete obligations enable the Acquirer to secure complete benefit from the transferred assets (including tangible, and intangible assets such as know-how and goodwill). In the case of a joint venture, non-compete obligations prevent the parent…

Indian Merger Control-exemption from 30 day filing deadline to CCI- Will it lead to reduction in “Gun jumping” cases ?

Much has been written about the recent exemption granted by the Government of India, Ministry of Corporate Affairs vide Notification dated 29 June, 2017 (‘Notification’)  exempting  parties to a “combination” that is mergers and acquisitions, amalgamations between parties having their assets or turnover beyond the prescribed thresholds , from notifying the Competition Commission of India…

Competition Appellate Tribunal upholds penalty imposed on SCM Soilfert for “gun-jumping”

Competition Appellate Tribunal (COMPAT) by its order dated August 30, 2016 has upheld the penalty imposed by the CCI on SCM Soilfert for failure to file a notice under Section 6(2) of the Competition Act, 2002(the Act) for a combination. Deepak Fertilizers and Petrochemicals Corporation Ltd. (DFPCL) is a company engaged in manufacturing and trading…

CCI approves acquisition and amalgamation between HDFC Ergo and L&T

The proposed combination relates to acquisition of 100% shareholding in L&T General Insurance Company Limited (“LTGI”) by HDFC Ergo General Insurance Company Limited (“HDFC Ergo”) from Larsen and Toubro (L&T). Subsequently, HDFC Ergo shall be merged with its then 100% subsidiary LTGI. HDFC Ergo is engaged in providing housing finance, finance for commercial real estate,…

CCI approves Nestlé & PAI JV

CCI vide its order dated July 01,2016 has approved JV entered between Nestlé and PAI (through Riviera Topco) which would be jointly controlled by Nestlé and PAI (through Riviera Topco) and would be principally active in the production, distribution and sale of ice cream products in certain geographical areas and to a limited extent in…

CCI penalizes General Electric (GE) for failure to notify its proposed acquisition of equity stakes in Alstom-

Competition Commission of India (CCI) by its order dated February 16, 2016 has penalized GE Energy Europe B.V., GE and GE Industrial France SAS (collectively, the “Acquirers”) for failure to notify a proposed combination in terms of Section 6(2)(b) of the Competition Act, 2002(Act) read with Regulation 5(8) of the Competition Commission of India(Procedure in…

Central Government notifies revised thresholds for Merger Control and extends Exemptions

The Ministry of Corporate Affairs, Govt. of India has made important revisions to the merger control regime in India. The following three Notifications were published in the Gazette of India on March 4, 2016. THRESHOLDS FOR NOTIFICATION REVISED– Through the first Notification, the Central Government has increased thresholds, both assets and turnover, for any transaction…

CCI approves acquisition of 49.86% stake in Sabarmati Gas Limited(SGL) by PSU petroleum companies –

CCI, by its order dated February 10, 2016, has approved acquisition of 49.86% stake in SGL by Gujarat State Petroleum Corporation Limited (“GSPC”); Gujarat State Petronet Limited (“GSPL”); and Bharat Petroleum Corporation Limited (“BPCL”).The stake proposed to be acquired in currently being held by India Infrastructure Development Fund (“IIDF”), India Infrastructure Fund (“IIF”) and IFCI…