Faster merger clearances by competition watchdog cut deal uncertainty

Mint found that 31 of these were deemed approved under Section 6(5) of the Competition Act, 2002, meaning they were automatically cleared as the CCI did not pass a final order within the stipulated period.According to data available on the CCI website for the period from 10 September 2024 to 26 March 2026, the regulator reviewed 199 cases, including 196 approvals, of which two were with modifications along with one exempt case (not requiring notification), one withdrawal, and one invalid notice.Queries emailed to the CCI and the ministry of corporate affairs seeking clarity remained unanswered till the time of publishing.

The Competition (Amendment) Act 2023 reduced the outer limit for deal approvals from 210 days to 150 days, effective September 2024, aiming to speed up deal clearances and improve regulatory certainty.According to lawyers, faster approvals reduce uncertainty and risk, enable quicker deal closures and capital deployment, lower costs, and improve deal certainty, making transactions more efficient and investor-friendly.“Lenders and investors benefit from improved visibility on timelines, enabling better alignment of financing commitments with deal closures, reducing reliance on costly bridge financing, and lowering risk premiums,” said Neeha Nagpal, founding partner at NM Law Chambers. “It also shifts negotiation dynamics, with fewer aggressive clauses such as ‘hell or high water’ provisions or regulatory break fees, particularly in non-complex transactions.”Where timelines are unclear, parties tend to build in valuation adjustments or rely on contingent structures to manage approval risk, said Pranav Bhaskar, senior partner at SKV Law Offices.