M&A deals: CCI to offer assistance in substantiative issues

To make compliance process more easier for companies, the Competition Commission of India (CCI) plans to provide assistance in "substantiative" matters pertaining to mergers and acquisitions.
Companies entering into combinations or mergers and acquisitions have to seek approval of the CCI, which has the mandate to keep a tab on unfair trade practices at the market place.
CCI Chairman Ashok Chawla today said the commission plans to help companies involved in combinations with regard to substantiative matters. "We are looking at the next stage where our officers will look at the substantiative issues (related to combinations)," he said.
At present, companies can avail facility of informal and verbal consultation with the staff of CCI prior to the filing of notice to a proposed combination. However, such interactions are now restricted to procedural aspects.

According to Chawla, the opinions expressed during consultations on "substantiative matters" related to combinations would not be binding on the parties.
Such an initiative would be a step in the right direction, he said while speaking at an event organised by industry body Assocham.
Besides, the regulator is looking at the possibility of tweaking guidelines for M&As after having discussions with various stakeholders.
So far, the Commission has approved about 160 combinations.