The latest combination regulations have brought within their purview a deal value threshold (DVT) and criteria for substantial business operations in India in what experts have termed the "single largest overhaul of the Indian merger control regime".
Combination regulations refer to merger or amalgamation among enterprises, or acquisition of control, shares, voting rights or assets of one enterprise by another.
The amendments usher in welcome changes for the industry, including shorter timelines for assessment of combinations and availability of hearings before the Competition Commission of India (CCI) on request during the merger review process. However, many experts believe it may pose a hurdle to ongoing deals and increase the CCI's workload.
"The Combination Regulations have clarified that the amended provisions would apply to ongoing deals which are to be consummated, wholly or partly, after September 10, 2024. This would impact long-stop dates for transactions where definitive documents have been signed but closing is yet to occur," says Nisha Uberoi, Partner & Chair-Competition Law, JSA Advocates & Solicitors.
CCI's workload
The introduction of the DVT, which is sector-agnostic, a lower threshold of 'control', and a narrower scope of minority acquisition exemptions is likely to result in a significant spike in the number of transactions notifiable to the CCI. Experts say these changes will also require massive capacity enhancement at the antitrust watchdog.
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