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

Veda Pharma Ltd and Kaveri Labs Ltd propose a merger. Their boards approve the merger proposal on 5 March. Under the Competition Act, 2002 as it now stands, when must notice of the combination be given to the Commission?

Notice must be given after a triggering event, such as board approval of the merger proposal, but before the combination is consummated. The earlier fixed thirty-day deadline has been replaced, so there is no rigid window from board approval, only the bar on consummation.

  1. AWithin thirty days of the board approval, as the old law required
  2. BAfter any of the specified triggering events such as board approval, but before consummation of the combinationCorrect
  3. COnly after the combination has been consummated
  4. DOnly after the shareholders of both companies have approved the merger

Explanation

Section 6(2) now requires notice after a triggering event such as board approval of the merger proposal or execution of an agreement, but before consummation. The fixed thirty-day window was removed by the 2023 amendment, so the first option states superseded law.

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