New Delhi: The Competition Commission of India (CCI) on Wednesday notified new merger and acquisition norms, making it mandatory for large corporates to ask for its approval before going in for high-value deals.

As per the regulations, firms having combined assets of Rs 1,500 crore or more, or a combined turnover of Rs 4,500 crore or more, can approach the CCI for its approval before going in for merger or acquisition.

As per the new rules, the company which is going to be acquired should have minimum net assets of Rs 200 crore or a turnover of Rs 600 crore.

The new norms will come into effect from June 1, 2011 and will apply only to transactions where binding documents are executed on or after June 1.

Dhanendra Kumar, Chairman, CCI said, “It will take a view on the proposed deal within 180 days of the filing of notice by the companies. The minimum period will be 30 days.”

The parties would have to submit a fee of up to Rs one lakh for getting the CCI approval.

The government was doing this exercise for the last two years for making it necessary for companies going for merger to seek approval of CCI. Ministry of Finance proposed it in order to avoid the disputes arising after merger and acquisitions.

(JPN/Bureau)