CCI (Competition Commission of India) which remained non operational for so many years has been in news since last few Months. It is now being noticed due to the order passed by them against few Real Estate Companies. Recently CCI has come out with a new notification in which it has announced that only those acquisition / Mergers are required to be notified to CCI in which the Acquiring Company will get 25% or more Voting rights. Earlier this limit was 15%. CCI Notification is just to align the rule of the law of this Country. SEBI had modified its Takeover code few Months ago in which an acquirer is required to give public offer once it reach 25% holding. Since July 2011, the Competition Commission has cleared 28 merger and acquisition applications. In none of those did it find any possibility of an adverse impact on competition. Although it has increased the threshold limit to 25%, the filing fees has been increased substantially. So all those Companies who are required to take CCI approval now have to pay much more. Fees hiked from 50,000 to 10 Lakhs. As per the notification certain type of Intra-group mergers, have been partially exempted. Where a holding company merges with a fully-owned subsidiary of a group enterprise and the other is when two subsidiaries of the same enterprise merge together, CCI nod will no more be required.
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