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    Question

    Which of the following is a criterion for an acquisition

    to be considered a combination under the defined thresholds under section 5?
    A The parties must have assets worth more than ₹1,000 crores or a turnover exceeding ₹3,000 crores in India Correct Answer Incorrect Answer
    B The assets of the acquirer and the acquired enterprise must be valued at less than ₹1,000 crores Correct Answer Incorrect Answer
    C The acquisition can involve any amount of assets or turnover Correct Answer Incorrect Answer
    D The parties must operate only in the international market Correct Answer Incorrect Answer
    E The acquisition must involve only local businesses with no cross-border implications Correct Answer Incorrect Answer

    Solution

    Section 5 Combination: The acquisition of one or more enterprises by one or more persons or merger or amalgamation of enterprises shall be a combination of such enterprises and persons or enterprises, if- (a) any acquisition where-- (i) the parties to the acquisition, being the acquirer and the enterprise, whose control, shares, voting rights or assets have been acquired or are being acquired jointly have,-- (A) either, in India, the assets of the value of more than rupees one thousand crores or turnover more than rupees three thousand crores; or (B) in India or outside India, in aggregate, the assets of the value of more than five hundred million US dollars, including at least rupees five hundred crores in India, or turnover more than fifteen hundred million US dollars, including at least rupees fifteen hundred crores in India; or; or (ii) the group, to which the enterprise whose control, shares, assets or voting rights have been acquired or are being acquired, would belong after the acquisition, jointly have or would jointly have,-- (A) either in India, the assets of the value of more than rupees four thousand crores or turnover more than rupees twelve thousand crores; or (B) in India or outside India, in aggregate, the assets of the value of more than two billion US dollars, including at least rupees five hundred crores in India, or turnover more than six billion US dollars, including at least rupees fifteen hundred crores in India.  

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