CCI Further amends combination regulations -minority acquisitions left untouched

CCI Further amends combination regulations -minority acquisitions left untouched The Competition Commission of India (‘CCI’) by way of a notification dated 09 October 2018 (“Notification”) has further amended the Competition Commission of India (Procedure in regard to the transaction of business relating to combinations) Regulations, 2011 (‘Combination Regulations’). Fortunately, based on strong opposition received from…

Competition clearance in Insolvency Resolution Process in India – Do the acquirers have a choice?

Competition Commission clearance in Insolvency Resolution Process in India – Do the acquirers have a choice? The enactment of the Insolvency and Bankruptcy Code, 2016 (IBC) in India has resulted in large corporate entities queuing up to acquire distressed companies and their assets, put on block following initiation of IBC proceedings. Acquisition of a corporate…

India- Central Govt. further dilutes competitive neutrality- exempts Oil and Gas PSUs from merger control by CCI

India- Central Govt. further dilutes competitive neutrality- exempts Oil and Gas PSUs from merger control by CCI In continuation of its slew of exemptions , the Government of India, Ministry of Corporate Affairs (MCA) ,  vide its recent Gazette notification dated 22.11.2017 has exempted all Central Public Sector Enterprises (CPSEs)  in the Oil & Gas…

Central Government exempts nationalized banks and rural banks from CCI approval for mergers etc.

The Government of India , Ministry of Corporate Affairs (“MCA”) has exempted Nationalized Banks from the applicability of the merger control regime under the Competition Act,2002  (Act) . The MCA vide a Gazette notification dated 30.08.2017 ,in exercise of the powers conferred by clause (a) of Section 54 of the Act  , has  exempted, all cases…

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…