Section 5
Prohibition On Merger Or Amalgamation With Intent To Control competition
No enterprise that produces or distributes any goods or services
shall, with intent to maintain monopoly or restrictive trade practices in the market, merge or amalgamate with another enterprise that produces or distributes the
similar or identical goods or services or purchase, either singly or jointly with its subsidiary enterprise, fifty percent or more of the shares of such enterprise or take
over the business of such enterprise.
Explanation: For the purposes of this Section, where a merger, amalgamation, share purchase or take over of persons or enterprises that produce or distribute
any goods or services of a similar nature results in more than forty percent of the production or distribution of the total production or distribution of such
goods or services within the State of Nepal, such merger, amalgamation or take over shall be deemed to have been made with intent to control competition.
shall, with intent to maintain monopoly or restrictive trade practices in the market, merge or amalgamate with another enterprise that produces or distributes the
similar or identical goods or services or purchase, either singly or jointly with its subsidiary enterprise, fifty percent or more of the shares of such enterprise or take
over the business of such enterprise.
Explanation: For the purposes of this Section, where a merger, amalgamation, share purchase or take over of persons or enterprises that produce or distribute
any goods or services of a similar nature results in more than forty percent of the production or distribution of the total production or distribution of such
goods or services within the State of Nepal, such merger, amalgamation or take over shall be deemed to have been made with intent to control competition.