28 Aug 2019
INDIA: Fast-track M&A Approval Process Introduced for Non-Competing Businesses
The Competition Commission of India (CCI) has introduced an expedited process – the Green Channel – for the approval of certain Mergers and Acquisitions (M&As). In line with this, any deal deemed eligible can be considered automatically approved as soon as the required notice is filed with the CCI. The measure, an amendment to India’s 2011 M&A rules, came into effect on 15 August.
To be eligible for this expedited clearance, all parties to an M&A (as well as any affiliates) must not produce or provide similar, identical or substitutable products or services. In addition, they must not be engaged in any activity related to the production, supply, distribution, storage, sale or trade in products or services, which are complementary to each other or are at different stages/levels of the same production chain. Any parties unsure if their M&A transaction qualifies for expedited clearance may seek guidance from CCI officials.
Parties interested in utilising the Green Channel should file their M&A notice using the revised Form I, along with a statutory declaration in the prescribed format, both of which can be accessed via the website of the Gazette of India.