Industry Against Mergers Regulation

The amendment of the Competition Commission Act - which aims to regulate mergers, amalgamations and acquisitions of Indian enterprises - will adversely affect the growth of industry, says a leading business chamber. M&A (merger and acquisition) activity in today''s context is an engine for economic growth. Any law that restricts the present status will result in loss of transactions, deny the opportunities for absorption of advanced technologies and impede growth, the Confederation of Indian Industry (CII) said in a statement.

The Competition Commission might take up to 210 days for approving such a proposal and a waiting period of so many days may not augur well for a specific deal, CII said. It also said the mandatory notification requisite should not be based on the turnover criteria, as envisaged in the amended version of the act. The asset/turnover criteria is coupled with the concept of Group covering within the ambit of regulation business conglomerates without having regard to the commonality of the product market being serviced by the members of such conglomerates, CII said.