Competition Commission of India approved the Merger of Reliance Infratel and Netizen Rajsthan

Competition Commission of India [CCI] on 20 February 2012 gave its nod to the proposed merger of Netizen Rajsthan with Reliance Infratel. Netizen Rajsthan, is a 100% subsidiary of Reliance Infratel which is in the business of providing passive telecom infrastructure devices like telecom towers and optic fibres.

Both the companies had approached to the CCI seeking  a merger to reduce administrative cost, removing multiple layer inefficiencies and for achieving operational and management efficiency.

The CCI, under the Competition Act, 2002of Parliament, has been empowered to look into high voltage merger and acquisition deals.

Under the Competition Act, 2002, companies with a turnover of more than Rs 1,500 crore will have to take the nod of CCI before merging with another firm. Companies with combined assets of Rs 1,000 crore or more, or a combined turnover of Rs 3,000 crore or more, would also require the CCI’s approval to get merged.