New Delhi : Merger and acquisition (M&A) deals involving public sector oil and gas companies have been exempted from seeking the approval of fair trade regulator Competition Commission of India (CCI), according to a government notification.
The Corporate Affairs Ministry’s decision to exempt such deals from the ambit of the CCI comes against the backdrop of the proposed consolidation and stake purchases among state-owned oil and gas firms, reports PTI.
The Ministry has said that all cases of combinations involving central public sector enterprises (CPSEs) operating in the oil and gas sectors under the Petroleum Act, 1934, have been exempted from seeking the CCI’s approval for five years.
The exemption will also be applicable to their “wholly- or partly-owned subsidiaries operating in the oil and gas sectors, from the application of the provisions of sections 5 and 6 of the (Competition) Act, for a period of five years”, said the notification dated November 22 said.
Sections 5 and 6 pertain to combinations. Under the norms, combinations or deals beyond a certain threshold compulsorily require approval from the CCI. Earlier this year, the ministry exempted mergers of nationalised banks from the CCI’s ambit.
