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| Govt initiates process to notify CCI's M&A provisions |
| Press Trust of India / New Delhi Aug 27, 2009, 11:23 IST |
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The government has initiated the process to notify the provisions of the CCI Act dealing with mergers and acquisitions, a move that would bring major deals like the proposed $23-billion Bharti-MTN merger within the the ambit of the competition watchdog.
"We are talking to all stakeholders. I wouldn't say it (notification of Sections 5 and 6 of the CCI Act) is expected soon, but I would also not say that it will take eternity," Corporate Affairs Minister Salman Khurshid said when asked about the likely date for the notification of the provisions.
Sections 5 and 6 of the CCI Act empowers the Competition Commission of India (CCI) to vet mergers and acquisitions that can have a bearing on the competition in a particular sector.
If the Sections of the CCI are modified before signing of the mega Bharti-MTN agreement, the deal would have to be cleared by CCI Act, sources in the CCI said.
Bharti Chairman Sunil Mittal and MTN Group President and CEO Phuthuma Nhlek earlier in the week had met Khurshid and apprised him of the legal aspect of the deal.
"It was a courtesy call. They apprised me about the deal, the legal issues in the deal etc and the issues they would face when the combination happens" the Minister had said.
According to Section 6 of the Act, "No person or enterprise shall enter into a combination which causes or is likely to cause an appreciable affect on the competition within the relevant market in India and such a combination shall be void."
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