Companies with turnover over Rs 500 cr in India required to seek CCI approval for mergers
New Delhi: The Competition Commission of India (CCI), on Tuesday, introduced new regulations expanding the scope of companies that must obtain approval for mergers.
Companies with a turnover exceeding Rs 500 crore or over 10 percent of their global turnover in India from the previous financial year will now be deemed to have significant business operations in India and will require CCI approval for mergers.
For digital services, the number of end users in India will be a critical factor in assessing significant operations.
Any transaction with a "deal value" over Rs 2,000 crore will be subject to CCI notification if the target entity has substantial business operations in India.
The CCI will evaluate the deal's value based on all forms of consideration over the two years preceding the transaction.
Previously, the CCI only considered asset size and turnover for merger approvals.
By incorporating the deal value threshold into the Competition Act, the government aims to address mergers that might otherwise avoid scrutiny under the traditional asset or turnover-based criteria.
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