-
Essay / The effect of competition law on mergers - 867
Whether it is the takeover of Hutchison Essar by Vodafone or the takeover of Novellis, NTT Tata Docomo or Reliance MTN by Aditya Birla, mergers in India and by Indian companies have multiplied and become bigger than ever. previously. The importance of mergers has led to greater legal control over them. One of the most significant developments in this regard has been the effect of competition law on mergers. Technically, a merger is the merger of two or more businesses or companies aimed at increasing the scope of service provision and efficient operation. Mergers are generally aimed at expanding the scale and scope of the company and producing more cheaply. On June 1, 2011, India joined the club of countries with fully functioning competition law. After speculation, controversy, doubt, opposition and persuasion, finally mergers, consolidations and acquisitions were added to competition law. Although the competition law was enacted in January 2003, it took the government almost eight years to include mergers in the finalizing law. This was largely because there was immense opposition to the merger law. From speculation that the ICC would deal with merger clearances delaying commercial transactions to claims that the ICC does not have the capacity to review complex mergers, given that it is a new competition agency . However, the motive behind all these speculations was to restrict the merger law so that it falls into competition law and hampers businesses. History shows that, whether in Canada, the United States or the European Union, the application of competition law has never been well received by large companies, because it risks harming profits and the ability to form cartels. However, in 2011, mergers were included in the comp...... middle of paper ......the first companies used the first form. The first merger filing form was almost discretionary. It only required that the basic information of the transaction be filed and to ensure that it did not fall into any of the categories provided for in the schedule and the regulations. However, contrary to speculation, this system proved to be very effective as the competitive assessment could be assessed from the fact that almost all merger applications were voluntary, including the details of the transaction as well as the reason why it would not have a negative effect on competition. AAEC or adverse competitive effect is a substantial test for the evaluation of mergers in India. Today, this system of discretion has proven effective as it has reduced opposition and accusations that the introduction would burden businesses or delay the application of merger control for various reasons...