CCI asks cos to define their market while seeking M&A approvals

New Delhi: Fair trade regulator CCI today said companies need to clearly define their market and possible anti-competitive effects while seeking approval for mergers and acquisitions.

Expressing hope that the number of M&A activities would rise in the coming years, CCI Member Geeta Gouri said that companies should provide all necessary information related to their proposed transactions while referring it to the regulator.

[caption id="attachment_563131" align="alignleft" width="380"] The M&A proposals are looked at by the Competition Commission of India (CCI) to check for any anti-competitive issues. Moneycontrol.com[/caption]

The M&A proposals are looked at by the Competition Commission of India (CCI) to check for any anti-competitive issues. "Companies should clearly define their market (while approaching CCI) as well as possible anti-competitive effects due to the proposed transaction... Also, CCI is particular on having all the data, information and board agreements related to a deal," Gouri said at a conference organised by industry body Assocham.

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She noted that the "100th case" related to M&A has just gone through the CCI. "With economic revival, more M&A deals could be expected," Gouri said during the conference titled 'Mergers Acquisitions-Tax Implications'.

Securities and Exchange Board of India (Sebi) chief general manager Parmod Kumar Bindish said the regulator has made Takeover Code more participatory. The CCI keeps a tab on anti-competitive practices in the market.

PTI