India’s Revised Merger Control Rules
India’s Revised Merger Control Rules
An Axiom5 Primer
Axiom5’s detailed primer on India’s revised merger control rules is available here.
On 09 September 2024, the Competition Commission of India (CCI) and the Ministry of Corporate Affairs (MCA) introduced significant revisions to the Indian merger control regulations, implemented via a series of notifications (see here).
Among the most significant changes is the introduction of a new "deal value threshold" (DVT): transactions that exceed a specified purchase price and meet local nexus criteria will now need to be notified in India.
In addition to the DVT, these five significant changes will streamline the merger filing process in India:
First, on-market share acquisitions meeting the jurisdictional thresholds can be completed 30 days after their execution. Previously, parties faced penalties for technical gun-jumping violations for onmarket purchases without prior approval from the CCI.
Second, to simplify the filing process, the list of transactions that are exempt from reporting has been streamlined. The new Competition (Criteria for Exemption of Combinations) Rules, 2024 (Exemption Rules) provide clear and concise guidance, resolving the often confusing interpretation of prior exemptions.
Third, the financial and de minimis thresholds, which help assess whether a transaction requires notification, have been substantially raised. This generous reset will ensure that smaller transactions do not require a filing.
Fourth, the overall merger review process has been streamlined, with timelines reduced from 210 to 150 days, and the introduction of a new provision enabling deemed approval of transactions if CCI fails to make a preliminary decision within 30 days of filing.
Fifth, the process for offering remedies has been fine-tuned and clarified.
The revamped Indian merger control rules apply to transactions executed prior to 10 September 2024 if they have not been consummated (wholly or in part), are notifiable under the new thresholds and are not otherwise exempt. Such transactions need to be notified and are subject to CCI approval. However, parties are protected against gun-jumping penalties for any part of such newly notifiable transactions which may have been given effect to.
Axiom5’s Primer (accessible here) aims to guide you through these notable amendments, helping you understand the intricacies of India's merger control regulations.