Factors considered by CCI to accept or reject a Merger / Acquisition
In case of combination by way of Merger or Acquisition coming under the purview of the Competition Act 2002, when Competition Commission of India (CCI) on receipt of notice from the Parties under Section 6 of the Act or on its Suo moto inquiry, makes its prima facie opinion that the combination is causing or likely to cause appreciable adverse effect on the competition (AAEC) , it starts investigation in to the combination. In that case, the parties to the combination must publish required information in Form IV and if found desired, CCI may invite comments from any person or member of public on the proposed combination by publishing the details provided in Form IV. Now, it is important to understand when and how CCI forms it prima facie opinion that the combination is causing or likely to cause appreciable adverse effect on the competition. Section 20 (4) of the Competition Act, 2002 states various factors, any or all which CCI takes into consideration to form the pr...