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Which statement about the CCI's regulation of combinations (mergers and acquisitions) is correct?

Combinations crossing the prescribed asset or turnover thresholds must be notified to the CCI, which can block or modify those likely to cause an appreciable adverse effect on competition in India. Regulation does not depend on hostility, automatic approval or exclusion of Indian companies.

  1. ACombinations are regulated only if they are hostile takeovers
  2. BCombinations above prescribed asset or turnover thresholds must be notified to the CCI, and those likely to cause an appreciable adverse effect on competition in India can be disallowedCorrect
  3. CThe CCI approves every merger automatically after 5 years
  4. DOnly combinations between two foreign companies are covered, never Indian ones

Explanation

The Act requires notice to the CCI for combinations crossing the prescribed asset or turnover thresholds. A combination likely to cause an appreciable adverse effect on competition within India can be prohibited or modified. Hostility is irrelevant, and Indian entities are covered.

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