MCA Notifies Competition (Amendment) Act, 2023 for M&As

Current Context: The Ministry of Corporate Affairs (MCA) has recently notified the Competition (Amendment) Act, 2023, which introduces significant changes to the merger and acquisition (M&A) landscape in India.

• One of the key updates is the introduction of a deal value threshold (DVT) for mergers and acquisitions.
• This means that any M&A deal with a value exceeding ₹2,000 crore will now come under the scrutiny of the Competition Commission of India (CCI), provided the target company has substantial business operations in India.
• This amendment aims to capture combinations that might otherwise evade scrutiny under traditional asset or turnover-based thresholds, especially in the digital market where mergers often involve significant data and privacy concerns.
• The new provisions will be effective from September 10, 2024.

Question:

1 What is the new deal value threshold (DVT) for mergers and acquisitions under the Competition (Amendment) Act, 2023?

• A) ₹2,000 crore
• B) ₹1,500 crore
• C) ₹5,000 crore
• D) ₹2,500 crore

Answer: A) The Competition (Amendment) Act, 2023 introduces a deal value threshold (DVT) of ₹2,000 crore for mergers and acquisitions.