Mon Sep 09 15:00:46 UTC 2024: ## India Revamps Merger Control Regime, Introducing Deal Value Threshold
**New Delhi, India:** The Indian government has significantly revamped its merger control regime, introducing a new “deal value threshold” that will require certain M&A transactions to undergo scrutiny by the Competition Commission of India (CCI). This move, effective from September 10th, aligns India with global regulatory practices and aims to ensure a more comprehensive review of large-scale mergers and acquisitions.
The newly-notified amendment to the Competition Act 2023 requires prior CCI approval for transactions where the global deal value exceeds ₹2,000 crore (approximately $240 million) and the acquired company has “substantial business operations in India” (SBO). The exact definition of SBO will be outlined in upcoming regulations from the CCI.
This change brings India in line with merger control frameworks in countries like the US, Germany, and Austria, which use similar deal value thresholds. Experts believe this will lead to an increase in notifiable transactions, particularly in sectors with high valuations but relatively low turnover, like technology.
In addition to the deal value threshold, the amendment also introduces a new “safe harbor” provision, exempting certain mergers and acquisitions from CCI approval. This exemption applies to companies with assets less than ₹450 crore and turnover less than ₹1,250 crore, aiming to streamline smaller transactions.
The revised framework also mandates the CCI to complete its merger review within 150 days, down from the previous 210-day timeframe. This aims to enhance accountability and ensure quicker approvals for businesses.
The introduction of the deal value threshold and other amendments marks a significant change to India’s merger control regime. While the move is expected to increase scrutiny of large deals, it also aims to create a more transparent and efficient process for businesses seeking to merge or acquire companies in India. The upcoming regulations from the CCI will provide further clarity on the implementation of these changes.
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