Tesco and
Trent Combination: Gun Jumping
Tesco said that the intention to acquire was
clear as far back as 17 December 2013. Tesco had sought the approval of the
DIPP and FIPB for the proposal to acquire fifty percent of the issued and paid
up equity share capital of THL and that the said application inter-alia mentioned
that the proposed investment by Tesco will include subscription of equity
shares of THL and acquisition of existing equity shares of THL from Trent the
claim of the Acquirer that no intention or decision to acquire was formed by
Tesco at the time of making the application to the DIPP and FIPB is not
correct.”
“The Acquirer’s claim that had the notice been
filed with the Commission without executing the definitive agreement (s), it
would have been incomplete as being without the relevant documents/details, is
also misconceived as the Acquirer in its application to the DIPP/FIPB on 17th
December 2013 had provided enough details of the proposed combination which
demonstrate that the parties were aware about the type, nature and purpose of
the proposed combination at the time of making the said application.” CCI
imposed Rs. three Crore fine on Tesco.
In
terms of Section 43A of the Act, if any person or enterprise fails to give
notice under sub-section (2) of Section 6 of the Act, the Commission shall impose
on such person or enterprise a penalty which may extend to one per cent of the
total turnover or the assets, whichever is higher, of such a combination.
Therefore, under the provisions
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