Competition Commission of India proposes amendments to M&A regulations

NEW DELHI: Competition Commission has proposed amendments to its procedural norms while seeking approval for mergers and acquisitions.

In this regard, the fair trade watchdog has suggested changes to 'procedure in regard to the transaction of business relating to combinations' regulations.

Amendments have been proposed to various aspects of these regulations, including those related to time taken for forming a prima-facie opinion about a combination.

Among the suggested changes, one pertains to the parties seeking confidentiality of information documents.

According to the draft amendments the Competition Commission of India ( CCI) would form its prima facie opinion on whether a "combination is likely to cause or has caused an appreciable adverse effect on competition within the relevant market in India, within 30 working days of receipt of the said notice".

At present, the regulations mention only 30 days. In recent times, many combinations, including some complex ones, have become before the commission for approval.

Besides, there have been at least two major rulings related to Sun Pharma's acquisition of Ranbaxy Laboratories and the merger of Holcim and Lafarge. In both cases, the regulator directed divesture of certain assets, after seeking public comments on the respective deals, to address anti- competition concerns.

CCI, which has the mandate to keep a tab on unfair business practices at the market place, has sought comments on the proposed amendments till April 16.