One may consider May 31 as an auspicious day for mergers and acquisitions, however, India Inc is rushing to complete the deals before the new merger control norms come into effect on June 1. All companies will need CCI approval before finalising a combination agreement, reports CNBC-TV18's Malvika Jain.
Tomorrow onwards all the companies will need the competition commission of India's (CCI) approval for entering into a merger and acquisition deal. However, this will be applicable to cases wherein deals trigger the quantitative threshold limit, which has been set by the ministry of corporate affairs.
For cross border deals, the MCA has notified that an approval will be needed only in two cases: one, when the total net asset value of the target company exceeds Rs 250 crore in India; second, the total turnover of the target company exceeds Rs 750 crore in India. However, some ambiguity continuous to exist in cases, say, when there is a no effective transfer of control or when there is a case of creeping acquisition.
Dhanendra Kumar, chairman, CCI said,
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