On 26th July 2022, the Competition Commission of India (CCI) approves the acquisition of Citibank, N.A.’s (Citi) and Citicorp Finance India Limited’s (Citicorp) undertakings comprising their consumer banking activities by Axis Bank under Section 31(1) of the Competition Act, 2002.
- The approval has been given for Rs. 12,325 crore Axis Bank – Citi deal, which is payable after the entire Citi Bank’s business is transferred to Axis Bank.
- Under the deal, Axis Bank would take over Citi’s credit cards, personal loans and wealth management businesses.
Highlights:
i.Background – In March 2022, Axis Bank and Citi had a definitive agreement for the acquisition of retail assets for USD 1.6 billion including consumer banking activities.
ii.Axis Bank is a licensed scheduled commercial bank that is engaged in retail banking services, commercial and wholesale banking services, and treasury services to individuals, micro, small and medium enterprises, agricultural businesses, and corporate businesses.
iii.Citi is a national banking association in the United States (US) that offers banking and wealth management services to retail customers.
- In India, Citi is a licensed scheduled commercial bank and offers a full range of consumer and institutional banking products and services.
iv.Citicorp is a non–deposit-taking non-banking financial company (NBFC) that offers business services such as personal loans and asset-backed finance.
CCI Approves Greenforest New Energies Stake Buy in Tata Power
The Competition Commission of India (CCI) approves the acquisition of up to 11.43% stake in Tata Power Renewable Energy Limited (TPREL) by Greenforest New Energies Bidco Limited (Greenforest).
Highlights:
i.Greenforest New Energies Bidco Limited is jointly run by BlackRock Alternatives Management, LLC. (BAM) and Mubadala Investment Company PJSC (MIC).
ii.BAM is a wholly owned subsidiary of BlackRock, a U.S. trading company that manages assets on behalf of institutional and individual investors worldwide.
- BAM actively participates in global investment management, risk management and advisory services to institutional and retail clients.
iii.MIC is an investment vehicle of the Government of Abu Dhabi which manages investment and development in various industries including energy, utilities and real estate.
iv.Tata Power Renewable Energy Limited (TPREL) is a wholly owned subsidiary of Tata Power Company Limited (TPCL) that generates power through renewable sources of energy.
Recent related news:
The CCI has approved the acquisition of Solenergi Power Private Limited by Shell Overseas Investments B.V. from Actis Solenergi Limited under Section 31 (1) of the Competition Act, 2022 and has also approved the acquisition of equity in 10 road infrastructure projects by Shrem InvIT from Dilip Buildcon Limited.
About Competition Commission of India (CCI) :
Chairperson – Ashok Kumar Gupta
Establishment – 2003
Headquarters – New Delhi, Delhi
