MERGER NOTIFICATION THRESHOLDS UNDER THE COMPETITION ACT, 2002 1. Jurisdictional Thresholds under the Competition Act .

Under Section 5 of the Competition Act, 2002, as amended (Competition Act ! com"inations must "e notified to the Competition Commission of #ndia if the$ meet the %urisdictional thresholds specified in Section 5. The thresholds can "e di&ided as follo's( Direct Acquisition of Control, Shares, Voting Rights or Assets Section 5 pro&ides that if an$ ac)uisition 'here( (a! the ac)uirer (the Ac)uirer ! and the enterprise 'hose control, shares, &otin* ri*hts or assets ha&e "een ac)uired or are "ein* ac)uired (the Tar*et ! %ointl$ satisf$ the threshold conditions set forth "elo', such an ac)uisition must "e notified to the Commission as a com"ination. An$ ac)uisition 'here the parties to the ac)uisition, "ein* the Ac)uirer and the Tar*et, %ointl$ ha&e( Scenario #n #ndia Entit Ac)uirer Tar*et A!!et! and +#,1,500 2r Crores1 (appro.. US/ 201 million!2 2and +US/ 6illion 050 2r T"rno#er +#,3,500 Crores (appro.. US/ 420 million!

5orld'ide

Ac)uirer Tar*et

+US/ 6illion

2,250

Of which in India

#,- 050 Crores (appro.. US/ 110 million! 2-

#,- 2,250 Crores (appro.. US/ 307 million!

An$ ac)uisition 'here the *roup to 'hich the Tar*et 'ould "elon* after the ac)uisition, %ointl$ ha&e or 'ould %ointl$ ha&e( Scenario #n #ndia Entit 8roup and Tar*et A!!et! +#,9,000 2r Crores (appro.. US/ 1.1 "illion! T"rno#er +#,14,000 Crores (appro.. US/ 1.1 "illion!

1 2

10 :acs ; 1 6illion< 1 Crore ; 10 6illion. Con&ersion done at( US/ 1 ; #,- 55 =1

Scenario 5orld'ide

Entit 8roup and Tar*et Of which in India

A!!et! 2+US/ 1 >illion #,- 050 Crores 2r (appro.. US/ 110 million!

T"rno#er +US/ 7 >illion #,- 2,250 Crores (appro.. US/ 307 million!

("! Ac)uisition of control "$ the Ac)uirer of the Tar*et, 'hen such Ac)uirer alread$ has direct or indirect control o&er another enterprise en*a*ed in production, distri"ution or tradin* of a similar or identical or su"stituta"le *oods or pro&ision of a similar or identical or su"stituta"le ser&ice (Competin* ?ntit$ !, if the Tar*et and the Competin* ?ntit$ %ointl$ ha&e( Scenario #n #ndia Entit A!!et! T"rno#er +#,- 3,500 Crores (appro.. US/ million! 420

Tar*et and+#,- 1,500 Crores 2r Competin* ?ntit$ (appro.. US/ 201 million! 2-

5orld'ide

Tar*et and+US/ 050 6illion Competin* ?ntit$ 2r Of which in India #,- 050 Crores (appro.. US/ 110 million! 2-

+US/ 2,250 6illion #,- 2,250 Crores (appro.. US/ million! 307

Ac)uisition of control "$ the Ac)uirer o&er the Tar*et, 'hen such Ac)uirer alread$ has direct or indirect control o&er a Competin* ?ntit$, if the *roup to 'hich the Tar*et 'ould "elon* after the ac)uisition %ointl$ ha&e or 'ould %ointl$ ha&e( Scenario #n #ndia Entit 8roup and Tar*et A!!et! +#,- 9,000 Crores 2r (appro.. US/ 1.1 "illion! 25orld'ide 8roup and Tar*et Of which in India +US/ 1 >illion #,- 050 Crores 2r (appro.. US/ 110 million! +US/ 7 >illion #,- 2,250 Crores (appro.. US/ million! 307 T"rno#er +#,- 14,000 Crores (appro.. US/ 1.1 "illion!

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(c! An$ mer*er or amal*amation in 'hich the enterprise remainin* after mer*er or the enterprise created as a result of the amal*amation (,e' ?ntit$ ! 'ill ha&e( Scenario #n #ndia Entit ,e' ?ntit$ A!!et! +#,- 1,500 Crores 2r (appro.. US/ 201 million! 25orld'ide ,e' ?ntit$ Of which in India +US/ 050 6illion 2r #,- 050 Crores (appro.. US/ 110 million! 2An$ mer*er or amal*amation in 'hich the *roup to 'hich the ,e' ?ntit$ 'ould "elon* after the mer*er or amal*amation ha&e or 'ould ha&e( Scenario #n #ndia Entit 8roup ?ntit$ and A!!et! ,e'+#,- 9,000 Crores 2r (appro.. US/ 1.1 "illion! 25orld'ide 8roup and ,e'+US/ 1 >illion ?ntit$ 2r Of which in India #,- 050 Crores (appro.. US/ 110 million! +US/ 7 >illion #,- 2,250 Crores (appro.. US/ million! T"rno#er +#,- 14,000 Crores (appro.. US/ 1.1 "illion! +US/ 2,250 6illion #,- 2,250 Crores (appro.. US/ million! 307 T"rno#er +#,- 3500 Crores (appro.. US/ million! 420

307

2. ?.clusion under the Com"ination -e*ulations . -e*ulation 3 of the Com"ination -e*ulations pro&ides that certain cate*ories of transactions specified in Schedule 1 of the Com"ination -e*ulations are ordinaril$ not li@el$ to cause an apprecia"le ad&erse effect on competition in #ndia, and, therefore, notice under su"=section (2! of Section 9 of the Act need not normall$ "e filed. 1. ?.emption under the 6CA ,otification. Aursuant to a circularBnotification issued "$ the 6inistr$ of Corporate Affairs, 8o&ernment of #ndia (the MCA Noti$ication!, the 8o&ernment of #ndia *ranted an e.emption from the pro&isions of Section 5 of the Competition Act, for a period of 5 $ears commencin* June 1, 2011, in respect of an$

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enterprise 'hose control, shares, &otin* ri*hts or assets are "ein* ac)uired and that either has assets in #ndia not e.ceedin* #,- 250 Crores (appro.. US/ 35 million! or turno&er in #ndia not e.ceedin* #,- 050 Crores (appro.. US/ 110 million!. CCCCC

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