CCI introduces fast track merger approval process – Green Channel route! August 19, 2019
Published in: Alerts
Competition Commission of India (‘CCI’) introduces “green channel” for Fast Track approvals of certain combinations – further amends Combination regulations.
By way of a notification dated 13 August 2019 (“Notification”), the CCI has further amended the Competition Commission of India (Procedure in regard to the transaction of business relating to combinations) Regulations, 2011 (‘Combination Regulations’). The amended Combination Regulations are effective from 15 August 2019.
The Combination Regulations provide the procedural framework for notifying the CCI of any acquisition, merger, or amalgamation, which constitutes a ‘combination’ under the Act. Parties to a combination are obliged to notify the CCI disclosing the details of the proposed combination before consummation of the combination.
The significant changes effected by way of this amendment are as follows:
A. APPROVAL OF COMBINATIONS UNDER “GREEN CHANNEL”
The newly inserted Regulation 5A enables parties to avail of a “green channel” for approval of certain categories of combinations. The categories of combinations which can avail of the Green Channel route are set out under the newly inserted Schedule III to Form I.
Combinations falling under Schedule III shall be deemed to be approved by the CCI upon filing.
However, the Regulations grant a right of hearing to the parties to combination, before the CCI arrives at a finding that a combination is not eligible for the green channel benefit.3
B. “SINGLE SUMMARY” INSTEAD OF SHORT AND LONG SUMMARIES EARLIER
The new Regulation 13A of the Combination Regulations provide for a single summary of the proposed combination, whereas, the Combination Regulations earlier prescribed both a short as well as a long summary.
For any further details and clarifications, please feel free to write to:
Mr. M M Sharma, Head – Competition Law, [email protected]