John Ltd. is in the process of taking over Tony Ltd. Turnover of Tony Ltd as per latest financial statements is ₹800 Crore and assets value is ₹280 Crore. There are no material changes in the value of assets and projecte

Section 5 of Competition Act, 2002 envisages financial thresholds beyond which any combination requires approval of the Competition Commission of India. Combinations that involve assets or turnover below threshold limits need to be notified to the Competition Commission of India for seeking approval. Central Government has granted exemption to acquisition of small targets known as de minimis exemption. In terms of Notification No. S.O. 988 (E) dated March 27, 2017, all forms of combinations involving assets not more than ₹350 Crore in India or turnover of not more than ₹1000 Crore in India are exempt from Section 5 of the Act for a period of 5 years. In the given case both value of assets (₹280 Crore) and turnover (₹800 Crore) are within the notified thresholds and hence no need to seek approval from the Competition Commission of India.