The recently notified Regulations governing combinations clearly intend to govern only big ticket M&A transactions. A welcome move from the Government, as otherwise a situation could have arisen of quantity overshadowing quality. The Regulations have been modified after a long consultative process with industry experts, with their feedback largely accepted by Competition Commission of India.
Putting to rest the uncertainty of the applicability of the Regulations on transactions either under way or being initiated prior to June 1, 2011 has been adequately addressed.
Now, the Regulations clearly specify that filing is required only if the approval of the board of director to the merger or amalgamation is obtained or execution of binding documents for acquisition of asset or control is done on or after June 1, 2011.
One may see a spurt of announcements in the coming days of group mergers being taken to the board for their final decision or execution of binding agreements for acquisition prior to June 1.