What is merger control clearance?

A merger control regime is described as “mandatory” when filing of a transaction is compulsory. Mandatory regimes normally also contain a so-called “suspensory clause”, which implies that the parties to a transaction are indefinitely prevented from closing the deal until they have received merger clearance.

What are thresholds for notification about merger transactions under US antitrust law?

The new thresholds will take effect on February 23, 2022 and remain in effect through early 2023. All transactions closing on or after the effective date will be governed by the new thresholds. The threshold for a notifiable transaction under the HSR Act has increased from $92 million to $101 million.

How are mergers regulated?

Mergers & Acquisition are regulated by competition law. As merger & acquisition results into decrease of competition in the market so there is a need to regulate it.

Why is merger control necessary?

Effective merger review is an important component of a competition regime as it can help to prevent consumer harm from anticompetitive transactions which likely would reduce competition among rival firms and/or foreclose competitors.

What is the threshold limit for a single enterprise for merger and acquisition for which the prior permission of the CCI is required under the Competition Act?

For instance, only those mergers where the combined Indian assets is worth over ₹ 2,000 crore or total Indian turnover is more than ₹ 6,000 crore would require prior approval from the CCI.

What are the thresholds for availing of de minimis exemption for acquisition under the Competition Act 2002?

Under this exemption, if the target enterprise has less than Rs. 350 crores in assets or turnover of less than Rs. 1000 crores then even if the combining entity crosses the threshold, the combination need not be notified under Section 6.

Is a merger is subject to antitrust law?

Section 7 of the Clayton Act prohibits mergers and acquisitions where the effect “may be substantially to lessen competition, or to tend to create a monopoly.” As amended by the Robinson-Patman Act of 1936, the Clayton Act also bans certain discriminatory prices, services, and allowances in dealings between merchants.

Is the Clayton Antitrust Act still in effect?

The Clayton Antitrust Act of 1914 continues to regulate U.S. business practices today. Intended to strengthen earlier antitrust legislation, the act prohibits anticompetitive mergers, predatory and discriminatory pricing, and other forms of unethical corporate behavior.

Who regulates mergers?

the Federal Trade Commission (FTC)
Merger guidelines in the United States are a set of internal rules promulgated by the Antitrust Division of the Department of Justice (DOJ) in conjunction with the Federal Trade Commission (FTC).

What is the main criteria for the ACCC to approve a merger?

Generally, the ACCC takes the view that a lessening of competition is substantial if it confers an increase in market power on the merged firm that is significant and sustainable.

Who can stop a merger?

For some deals, it is possible to resolve competitive concerns by consent agreement with the parties. In a few cases, the agency and the parties cannot agree on a way to fix the competitive problems, and the agency may go to federal court to prevent the merger pending an administrative trial on the merits of the deal.