Expands applicability of "small target exemption" under the Competition Act

On 27 March 2017, the Ministry of Corporate Affairs issued a notification, extending the scope of the "small target exemption" under the Competition Act to include transactions structured as merger or amalgamation. Previously, the small target exemption, which excludes a transaction from the requirement to obtain the Competition Commission's prior approval, only applied to acquisition.

The thresholds under the small target exemption (the value of the target company's assets is not more than INR 3.5 billion or the turnover of such company is not more than INR 10 billion in India) remain unchanged.

• Type:

  • Treatment and operation (Competition policy)
  • Promotion and facilitation (Investment facilitation )

• Industry:

  • Not industry specific

• Sources:

  • Competition Commission of India - Notification, Notification regarding (a) de minimis exemption; (b) relevant assets and turnover in case a portion of an enterprise or division or business is being acquired, taken control of, merged or amalgamated , http://www.cci.gov.in/sites/default/files/notification/S.O.%20988%20%28E%29%20and%20S.O.%20989%28E%29.pdf, 29 Mar 2017
  • Competition Law (Blog), Substantive Changes Introduced in the Indian Merger Control Regime, http://competition.cyrilamarchandblogs.com/2017/04/cci-brings-substantive-changes-indian-merger-control-regime/#_edn1, 04 Apr 2017
  • Hindustan Times, India tweaks rules to ease M&As, lure more FDI, http://www.hindustantimes.com/business-news/india-tweaks-rules-to-ease-m-as-lure-more-fdi/story-kQeWMSdu7t1e9K2zM1cN5N.html, 30 Mar 2017