COMPETITION LAW AND CROSS BORDER MERGERS

Authors

  • Shikha Tripathi B.Com LLB Student, Institute of Law, Nirma University Author

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Abstract

Ever since liberalization, there has been an increase in cases of mergers and acquisitions. The Competition Act has the power to regulate Mergers and acquisitions. In 2008, the commission had come out with the Competition Commission (Combination) Regulations, which regulates merger transactions. The MCA came out with the notification to implement the cross-border merger provision, section 234, on 13th April, 2017. The competition commission has been dealing with cross border merger cases before the particular section was notified as well. The relevant provisions under the Companies act, 2013 and Competition Act, 2002 are discussed further in the paper. The Competition Act has set a threshold of 210 days for deciding upon the issues of mergers, amalgamations, and acquisitions. It should not be seen as a minimum time period for party to notify the Commission. The combination comes into effect from the next day Since cross- border M&As are the order of the day, the law takes care to provide domestic nexus as a pre- requisite for notifying the Commission in terms of assets or turnover in India of the combined entity. of being accepted by the CCI. Not every Combination case is required to be notified to the commission. As compared to other countries Indian laws prescribe high limits for assets or turnover. Cross border, mergers have recently increased in India and the law makes sure that such mergers are notified to the commission about the combined entity. This article discusses the contemporary issues related to the powers of the Competition Commission and merger controls. Further, it discusses decisions given by the CCI in cases of cross-border mergers. The commission also has extra territorial jurisdiction to adjudge cases of cross border mergers.

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Published

27-11-2018

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How to Cite

Tripathi, Shikha. “COMPETITION LAW AND CROSS BORDER MERGERS”. South Asian Law & Economics Review, vol. 3, Nov. 2018, pp. 160-8, https://journal.thelawbrigade.com/saler/article/view/838.