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CS Professional · Corporate Restructuring, Valuation and Insolvency · Regulation of Combinations

Sunrise Pharma Ltd and Vedic Remedies Ltd, both Indian companies, propose to merge. Their boards have approved the merger proposal. Under the Competition Act, 2002 as given, what is the position on giving notice to the Commission for this combination (assuming it is notifiable and not exempt)?

Notice is mandatory and must be filed after the boards approve the merger proposal but before the combination is consummated. The thirty-day window and the earlier optional wording have been replaced by the amendments reflected in Section 6(2).

  1. ANotice must be given after the approval by the boards but before the combination is consummatedCorrect
  2. BNotice must be given only after the merger is consummated
  3. CNotice is optional at the choice of the enterprises
  4. DNotice must be given within thirty days of the board approval

Explanation

Section 6(2) says a person proposing to enter into a combination shall give notice after approval of the merger proposal by the boards (or execution of the agreement) but before consummation. The old 'within thirty days' limit was substituted, and the 'may at his option' wording was replaced by 'shall'. So the thirty-day option is wrong.

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