Merger and acquisitions: Inorganic growth, the new mantra for the corporate India
After years of suppressed investment environment, India Inc. is showing the signs of revival. The M & A (Mergers and Acquisitions) have increased. This credit pretty much should go to the positive impact created by the Modi government which has improved this market sentiment.
Fair play regulator CCI (Competition Commission of India) used to hardly get four to five cases of M&As for approval every month in the past few years. A senior CCI official stated that in the last three months, they have seen that number double to almost 10 a month. He expressed his happiness over the new development and mentioned that these are green shoots of revival and a spurt in investment activity.
Under the Competition Act, CCI’s approval for the M&As is needed when the target company has assets of over Rs.250 crore and an annual turnover of more than Rs. 750 crore.CCI then examines whether such a merger could create a monopoly and affect competition. CCI wants to give a fair chance to all the players in the market and wants to safeguard everyone’s interest. Also CCI has to keep in mind that the consumer should not be subjected to a monopolistic market which is a very situation for any buyer as s/he does not have options and the single player will operate as per his terms and conditions.
The CPP Investment Board Singaporean Holdings has sought CCI’s nod for subscribing the compulsorily convertible shares of L&T Infrastructure Development Projects.
Source- The Economic Times
CCI, Competition Commission of India, CPP Investment Board Singaporean Holdings, India Inc, L&T Infrastructure Development Projects, Mergers and acquisitions, Modi government
