The PVR-INOX merger may not require the approval of the Competition Commission of India (CCI) as their combined revenues are less than Rs 1,000 crore for 2020-21 — triggering the de minimis exemption clause.

Under this clause, transactions below a certain threshold are exempted from notification to the competition authority.

Analysts said the merger may not need the approval of the competition regulator as de minimis exemption allows automatic approval till the combined revenues pass the Rs 1000-crore threshold or combined assets stay below Rs 350 crore.

In the last fiscal, PVR had turnover of Rs 698 crore and INOX, Rs 148 crore fulfiling the less-than-Rs 1,000-crore criterion.

Speaking to CNBC TV-18, Ajay Bijli, chairman and managing director, PVR said that as per their counsels the merger does not need CCI approval.

He said approvals from shareholders, stock exchanges and the National Company Law Tribunal (NCLT) will take six months to nine months.

The shares of both the companies hit 52-week highs on Monday. At the BSE, the PVR scrip gained more than 3 per cent to close at Rs 1,883.50, while the INOX counter rallied by 11.33 per cent to close at Rs 522.90.