The Competition Commission of India (CCI) today notified further amendments to the CCI (Procedure in regard to the transaction of business relating to combination) Regulations, 2011 (Merger Control Regulations) to simplify the filing requirements..The CCI had notified the Merger Control Regulations on June 1, 2011 and the subsequent amendments were notified on February 24, 2012..Some of the key changes are:.Additional acquisition of stakeIf the acquisition is less than 5 percent of the shares in a financial year, where the acquirer already holds 25 percent share of the company then as per the amendment there is no requirement of notice to be filed; unless it leads to acquisition of control. This change is significant and is in line with the SEBI takeover code.Intragroup AcquisitionAny acquisition within the same group is exempt unless where the acquired enterprise is jointly controlled by enterprises that are not part of the same group.Intragroup ReorganisationA merger or amalgamation of two enterprises where one of the enterprises has more than fifty per cent (50%) shares of the other enterprise within the same group is exempt. This brings more clarity to the earlier amendment as earlier only Intra-group mergers and amalgamations involving wholly owned subsidiaries had been exempted. This provision is a relief and brings more clarity..The full text of the notification can be read below.
The Competition Commission of India (CCI) today notified further amendments to the CCI (Procedure in regard to the transaction of business relating to combination) Regulations, 2011 (Merger Control Regulations) to simplify the filing requirements..The CCI had notified the Merger Control Regulations on June 1, 2011 and the subsequent amendments were notified on February 24, 2012..Some of the key changes are:.Additional acquisition of stakeIf the acquisition is less than 5 percent of the shares in a financial year, where the acquirer already holds 25 percent share of the company then as per the amendment there is no requirement of notice to be filed; unless it leads to acquisition of control. This change is significant and is in line with the SEBI takeover code.Intragroup AcquisitionAny acquisition within the same group is exempt unless where the acquired enterprise is jointly controlled by enterprises that are not part of the same group.Intragroup ReorganisationA merger or amalgamation of two enterprises where one of the enterprises has more than fifty per cent (50%) shares of the other enterprise within the same group is exempt. This brings more clarity to the earlier amendment as earlier only Intra-group mergers and amalgamations involving wholly owned subsidiaries had been exempted. This provision is a relief and brings more clarity..The full text of the notification can be read below.