May 2009
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India's merger control regime

The Indian competition law regime, first enacted in 2002 and amended in 2007, has gained momentum in 2009, with the appointment of a new chairman and other members to the Competition Commission (CCI), amidst speculation that the rules on cartels, abuse of dominance and merger control will come into force later this year. Whilst the current economic climate means that M&A activity has inevitably taken a back seat, the new competition rules signal significant changes for foreign and domestic deals. In summary, once the law is in force, domestic and foreign mergers which meet certain turnover or asset thresholds must be notified to the CCI for clearance. According to the regulations, a deal is not likely to adversely affect competition in India unless at least two parties to a deal have a presence in India, namely (1) each party generates Rs 600 crore turnover in India or (2) each party has assets to the value of Rs 200 crore in India, in addition to satisfying other worldwide turnover/asset requirements. The 210-day wait —a deal breaker for many transactions — has been reduced to 30 days or 60 days for most deals, on par with international standards. […]

Suzlon Raises Stake in REpower

India-based wind-turbine maker Suzlon Energy Ltd. said Monday it paid EUR30 million ($39.6 million) to Portugal's Martifer Group to raise its stake in Germany's REpower Systems AG to 76%. This is the second installment of a total EUR270 million that Suzlon had in December said it would pay to buy Martifer's 22.4% stake in REpower. The Indian company had paid the first installment of EUR65 million in December to raise its stake to 73.1%. […]

Toll acquires 40% stake in Indian company

Freight and logistics company Toll Holdings has expanded its presence in India by acquiring a 40 percent interest in New Delhi-based BIC Logistics, with the option of upgrading to a majority holding over the next two years. BIC operates road, rail and air transport across India, with a company-owned fleet of 250 trucks and agreements with rail and air operators. BIC's annual revenue was US$26.17 million for the year ended March 2009. Toll managing director Paul Little told The Australian BIC was a strong fit with Toll's existing operations in India. […]