Comment on the following: Compliance of the Competition Act, 2002 in relation to merger and amalgamation.

Compliance of the Competition Act, 2002 in relation to merger and amalgamation Mergers must form part of the business and corporate strategies aimed at creating sustainable competitive advantage for the company. Mergers and amalgamations are important strategic decisions leading to the maximisation of a company's growth. Section 6 of the Competition Act prohibits any person or enterprise from entering into a combination which causes or is likely to cause an appreciable adverse effect on competition within the relevant market in India and if such a combination is formed, it shall be void. Section 6(2) envisages that any person or enterprise, who or which proposes to enter into any combination, shall give a notice to the Commission disclosing details of the proposed combination, in the form prescribed and submit the form together with the fee prescribed by regulations. Such intimation should be submitted within 30 days of: approval of the proposal relating to merger or amalgamation, referred to in section 5(c), by the board of directors of the enterprise concerned with such merger or amalgamation, as the case may be; execution of any agreement or other document for acquisition referred to in section 5(a) or acquiring of control referred to in section 5(b). The thresholds with respect to such requirement is specified under Competition Act.