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Goldman Sachs affiliate GS Mace not penalized for failing to notify CCI of acquisition

By  |  April 15, 2012

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    The Competition Commission of India has decided not to penalize Goldman Sachs affiliate GS Mace for failing to give prior notice for its Max India acquisition. GS Mace acquired an additional 6.499 percent ownership share in December 2011, bringing its total to 15.602. Although regulations require notifying the CCI when holding more than 15 percent in a company, a February amendment to the laws excuses companies from notifying the regulator when acquisitions are less than 25 percent of the shares or voting rights on a cumulative basis.

    GS Mace had attempted to take advantage of a provision that exempts financial institutions from filing notice if the share subscription comes about under an investment or loan agreement. GS Mace provided a contract note, but the CCI ruled that a contract note did not qualify as an investment agreement.

    Full content: The Hindu Business Line

     

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