The government today said it will keep an eye on those merger and acquisition deals that create monopolies and impede economic growth.
“The Competition Commission of India (CCI) will check mergers that end up creating monopolies or abuse of dominance harmful to consumers and small producers and impede orderly economic growth,” Corporate Affairs Minister (MCA) Murli Deora said at a FICCI event.
From June 1 all Companies will be required to seek nod of CCI before going ahead with Merger or acquisition. The CCI is empowered to do that under Sec 5 and 6 of the Competition Act. Companies with a turnover of over 1500 crore shall be required to seek CCI nod. This will go a long way in the spirit of CCI for restricting monopolies and preventing abuse of dominance.