Realizing that India is one of the fastest growing economy of the world and recognizing that the growth process is driven inter-alia by Mergers & Acquisitions, Indian Competition Act, 2002 regulates 'combinations'. From 1st June, 2011 till 31st March, 2016, the CCI considered 360 cases of combination and none of the transaction was blocked. This shows that the CCI is conscious of the need and usefulness of mergers/ acquisition as a route to enhance size and scope of business for success of business on long term basis. The combination regulation has two compartments namely (i) to determine as to whether the aggregate value of assets/turnover exceeds the threshold prescribed and if so the transaction is mandated to be reported to CCI and it would be a case of gun jumping in case transaction is consummated prior to its approval and (ii) assessment of 'likely appreciable adverse effect on competition in the relevant market in India of proposed transaction keeping in view market share post combination, the extent of barriers to entry, level of combination, countervailing buyer power, availability of substitutes, the extent of competition likely to sustain, competition through imports, likelihood of removal of vigorous competitor, nature of vertical integration, possibility of either party going to fail in business, nature of innovation, contribution to the economic development and whether the benefits outweighs the adverse impact. The Government has raised thresholds from time to time. The CCI has fine-tuned its Combination Regulations based on experience gained. Reforms rabbit has not been allowed to become turtle, however, there are still many areas which need to be addressed to ensure simple and swift combination regime. The views expressed by author are personal.
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