NEW DELHI : The government has increased the threshold of M&As for application of competition law under business combination provisions.
The government on Friday issued a notification saying it has raised threshold limits for assets from Rs 350 crore to Rs 450 crore and turnover from Rs 1,000 crore to Rs 1,250 crore concerning exemption for business combinations under Section 5 of the Competition Act. The notification clarified that in cases of acquisition or merger involving a part of a business, the calculation of relevant assets and turnover under Section 5 of the Act depends on the value of that specific portion. The government has also enhanced the threshold value based on wholesale price index and exchange rate of rupee, value of assets, and turnover by 150%.