Govt. committed to bring fair merger, acquisition regime for economic growth: Deora

April 21st, 2011 - 10:38 pm ICT by ANI  

New Delhi, Apr 21 (ANI): Union Minister of Corporate Affairs Murli Deora on Thursday said that the Competition Commission of India (CCI) will soon finalise regulation on mergers and acquisitions that may create monopoly in the market.Addressing a One day Conference on “Regulation of Combinations” jointly organised by the FICCI and the Competition Commission of India here, Deora said: ” The Government is committed to bringing in a fair merger and acquisition regime in the country, so that these regulations become an instrument of economic growth of the country.”He said the CCI will check mergers that end up in creating monopolies or abuse of dominance harmful to consumers and small producers and impede orderly economic growth. He said there is no denying the fact that effective and fair competition is a must for an orderly development of economy and compliance with the provisions of the competition law absolutely essential to attain this goal. He said that the experience of developed capital markets and economies such as the US and Europe has made it increasingly evident that regulation of mergers and acquisitions helps in strengthening the market and its competitiveness to the advantage of consumers and the national economy. “It is in this context that the Government had notified Section 5 and 6 of the Competition Law relating to combinations including acquisitions, enquiries of control and mergers and amalgamations,” deora added. The Minister said that International experience shows that most mergers lead to increase in efficiencies that may result from achieving economies of scale, combined production plants, integrating procurement and pooling research and development resources and so on. “Since some mergers may end up in creating monopolies or abuse of dominance which may harm consumers’ and small producers’ welfare and impede orderly economic growth, the role of Competition is to check such mergers through merger regulations,” he added.

The conference witnessed presentations on the key provisions of the Competition Act on mergers and acquisitions, regulations on M & A activity in India, cross border transactions-the international experience and issues of Indian industries related to combinations. (ANI)

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