In the Competition Commission of India’s (CCI) latest approval of a proposed combination (see here), passed on 19th October, 2011, the CCI approved the amalgamation of ALSTOM Holdings India Limited (AHIL) and ALSTOM Projects India Limited (APIL) in a swift period of 7 days upon receiving notice! This is CCI’s fifth order pertaining to Combinations since the Combination Regulations came into effect on June 1, 2011, and with this CCI beats all its own records in speed.
Previous orders passed by the CCI approving mergers were between AICA Laminates India and Bombay Burmah Trading Corporation ( order passed in 23 days), between G & K baby Care Limited and Danone Asia Pacific Holdings on the one hand and the Wockhardt group on the other (order passed in 22 days), the much hyped acquisition of UTV Software Communications Limited by Walt Disney Company (order passed in 25 days) and the acquisition of the Bharati Group Holdings by Reliance Industries Limited and Reliance Industrial Infrastructure Limited (order passed in 18 days). Thus all the orders have been passed within a month, even though the time-limit for the CCI under the Regulations is one hundred and eighty days!
This would quell doubts of many in the industry who were apprehensive about the compulsory pre-merger review process that was created by the Combination Regulations this year, where entities within certain thresholds would have to mandatorily notify the CCI about any proposed Combinations. Since no combination could take place without the CCI’s prior sanction, many felt that delays caused in passing orders by the CCI would cost trade and business dearly. However, with the five orders passed to date, the CCI has quelled all doubts regarding its efficiency. The latest order, coming within a week of one of the parties giving notice to the CCI, goes a long way in boosting the merger regulation regime in India.
Previous orders passed by the CCI approving mergers were between AICA Laminates India and Bombay Burmah Trading Corporation ( order passed in 23 days), between G & K baby Care Limited and Danone Asia Pacific Holdings on the one hand and the Wockhardt group on the other (order passed in 22 days), the much hyped acquisition of UTV Software Communications Limited by Walt Disney Company (order passed in 25 days) and the acquisition of the Bharati Group Holdings by Reliance Industries Limited and Reliance Industrial Infrastructure Limited (order passed in 18 days). Thus all the orders have been passed within a month, even though the time-limit for the CCI under the Regulations is one hundred and eighty days!
This would quell doubts of many in the industry who were apprehensive about the compulsory pre-merger review process that was created by the Combination Regulations this year, where entities within certain thresholds would have to mandatorily notify the CCI about any proposed Combinations. Since no combination could take place without the CCI’s prior sanction, many felt that delays caused in passing orders by the CCI would cost trade and business dearly. However, with the five orders passed to date, the CCI has quelled all doubts regarding its efficiency. The latest order, coming within a week of one of the parties giving notice to the CCI, goes a long way in boosting the merger regulation regime in India.
[This post has been authored by Sreerupa Chowdhury, B.A./B.Sc. LL.B., 4th Year, The W.B. National University of Juridical Sciences, Kolkata]
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