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CCI Approved the Proposed Combination of SAMC to acquire PAMPL, PTCPL and PRAPL

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CCI approves acquisition of three Principal Financial firms by Sundaram AssetOn April 6, 2021, The Competition Commission of India (CCI) approved the proposed combination which is related to the 100% acquisition of the issued and paid-up equity share capital of Principal Asset Management Private Limited (PAMPL), Principal Trustee Company Private Limited (PTCPL) and Principal Retirement Advisors Private Limited(PRAPL) by Sundaram Asset Management Company Limited(SAMC).

About the Proposed combination: 

  • Based on the proposed combination, the schemes of the Principal Mutual Fund (PMF) shall be transferred to Sundaram Mutual Fund (SMF)
  • The trusteeship and management of the PMF schemes shall be transferred to Sundaram Trustee Company Limited (STCL) and SAMC.

About PAMPL, PTCPL and PRAPL:

  • PMF is founded in 2000 in India which is a part of the Principal Financial Group, a global investment management leader headquartered in Des Moines, Iowa, US.
  • PAMPL is engaged in providing asset management services to the PMF and operating/ managing the PMF schemes. It had assets under management of ₹7,447 crores as of December 2020 with about 90 per cent of this in equity-oriented schemes.
  • SAMC announced the acquisition of the Principal Asset Management business for ₹338.53 crore in January 2021.
  • PTCPL is engaged in the business of providing trusteeship services to the PMF.
  • PRAPL provides long term investment and retirement planning and advisory solutions and services

Recent Related News:

On February 23, 2021, The Competition Commission of India (CCI) approved the acquisition of shares of Tata Communications Ltd (TCL), by PanatoneFinvest Ltd. In accordance with the deal, the PanatoneFinvest Ltd will buy a shareholding of 26.12% which will increase its total shareholding to 74.99% from 48.87%. Now, its shareholding in Tata Communications Ltd should not exceed 74.99%.

About Sundaram Asset Management Company Limited(SAMC):

  • SAMC is a wholly-owned subsidiary of Sundaram Finance Limited (SFL). It is the investment manager for SMF and manages funds that cater to the investment needs of investors with different risk, reward and liquidity preferences.
  • Currently, it has over ₹40,000 crores in assets under management, the majority of which is in equity-oriented schemes pertaining to procurement, solicitation and distribution of insurance products and policies and (iii) association of Mutual Funds in India as a distributor of mutual funds.

Establishment – 1996
Headquarters – Chennai, Tamil Nadu
Managing Director – Sunil Subramaniam