The competition regulator currently has only two members, with one member doubling as chairperson against a quorum requirement of three members. However, the CCI has invoked the doctrine of necessity and waived the quorum requirement, according to sources
After a gap of four months, the Competition Commission of India (CCI) resumed clearing mergers and acquisitions (combination deals) on February 9, and approved as many as six M&A and corporate restructurings.
The CCI approved the proposed acquisition of up to 25 percent shareholding in DP World’s wholly-owned subsidiary Hindustan Ports Private Limited (HPPL) by the National Investment and Infrastructure Fund (NIIF) and proposed merger of Hindustan Infralog Private Limited (HIPL) into HPPL.
C-2022/10/976 Commission approves proposed acquisition of upto 25% shareholding in HPPL by National Investment and Infrastructure Fund and proposed merger of HIPL into HPPL.#CCIMerger #Mergers #MergerAndAcquisition pic.twitter.com/SjwXhcArM0
The CCI also approved the internal restructuring involving certain subsidiaries of Keimed Private Limited, the acquisition of the textile effects business of Huntsman International by Archroma Operations, and the subscription of Compulsorily Convertible Preference Shares of Hero Future Energies Global Limited by Ardor Holdings II Pte Ltd.
The regulator also greenlighted acquisition of equity and preference shares of Lanco Anpara Power Limited (LAPL) by Megha Engineering and Infrastructures Limited (MEIL).
The competition regulator currently has only two members, with one member doubling as chairperson against a quorum requirement of three members. However, the CCI has invoked the doctrine of necessity and waived the quorum requirement.
Also read: Explained | What is the role of Competition Commission of India
The Ministry of Corporate Affairs (MCA) had received a legal opinion from the advocate general to waive the three-member quorum requirement, as the CCI currently has only two members.
CNBC-TV18 had earlier reported, quoting sources, that the top law officials have recommended the quorum requirement be revoked as the appointment of new members will take time.
According to the report, with the decks now clearing for combination deal approvals, at least 20 M&A worth $ 1.3 billion are in the pipeline, awaiting CCI clearance.
Also read: 16 deals worth more than Rs 10,000 crore stuck as wait for CCI quorum continues
The CCI had last week approached the MCA seeking a way to start the approval process for various M&As, foreign direct investment (FDI) proposals, and corporate insolvency resolution cases that were stuck due to the absence of a full-time chairperson and the required three-member quorum.