The Competition Commission of India (CCI) has approved the acquisition of stake in IIFL Home indirectly by Abu Dhabi Investment Authority (ADIA) group, sole beneficiary and settlor of the Platinum Jasmine Trust.
i.The proposed transaction relates to the acquisition of up to 20 percent stake in IIFL Home Finance by Platinum Owl C 2018 RSC Ltd, a trustee acting for Platinum Jasmine Trust.
ii.Background – In June 2022, IIFL Home Finance, a subsidiary of IIFL finance Limited had entered into definitive agreements for raising Rs 2,200 crore of primary capital for a 20 percent stake from a wholly-owned subsidiary of ADIA.
About IIFL Home:
i.IIFL Home is a housing finance company registered with the National Housing Bank which is a wholly-owned subsidiary of IIFL Finance Limited.
ii.IIFL Home will provide loans for the purchase, construction and renovation of homes, small and medium enterprise (SME) loans for business and construction finance loans to builders and developers engaged in the construction of affordable homes.
CCI Approves Acquisition in ODPL by Sekhmet; ODPL Acquisition in OPPL and OLSPL
The CCI approves the acquisition of majority shareholding in Optimus Drugs Private Limited (ODPL) by Sekhmet Pharmaventures Private Limited (Sekhmet) and ODPL’s acquisition of a shareholding in Optimus Pharma Private Limited (OPPL) and Optimus Life Science Private Limited (OLSPL) under Section 31(1) of the Competition Act, 2002.
i.Sekhmet is a private company that provides management services to its subsidiary, Anjan Drugs Private Limited (Anjan), which is engaged in the manufacture and sale of active pharmaceutical ingredients (APIs) and pharmaceutical intermediates in India and abroad.
- Sekhmet belongs to the PAG group, a leading alternative investment firm focused on APAC, with a combination of 3 core strategies that includes Credit & Markets, Private Equity and Real Assets.
ii.Optimus Drugs Private Limited (ODPL) is engaged in the manufacturing and sale of API’s and pharmaceutical intermediates in India.
- OPPL is engaged in the manufacture and sale of finished dosage formulations (FDFs) and also provides contract development and manufacturing (CDMO) services for FDFs in India.
- OLSPL is engaged in the marketing of FDFs for its group companies in India.
CCI Approves Acquisition of Holcim’s stake in Holderind, Ambuja & ACC Ltd by Endeavour
The CCI approves the acquisition of Holcim’s stake in Holderind Investments Limited, Ambuja Cements Limited and ACC Limited by Endeavour Trade and Investment Limited, an Adani Group company.
- The proposed combination envisages the acquisition of the entire share capital of Holderind Investments Limited (Holderind) by Endeavour Trade and Investment Limited (Endeavour).
i.Background – In May 2022 Adani Group entered into a USD 10.5 billion deal to acquire Holcim’s India cement business.
ii.Holcim through Holderind Investments Limited holds 63.11 percent equity capital of Ambuja Cements Limited and 4.48 percent equity share capital of ACC Limited.
- Further, Ambuja holds 50.05 percent of the paid-up equity share capital of ACC.
ii.Endeavour is a newly incorporated company under Adani group and Holderind is a holding company of Ambuja and ACC, which are engaged in cement manufacturing of cement in India.
Note – Under SEBI rules, Endeavour must launch an open offer for further acquisition of up to 26 percent of the extended share capital of Ambuja and ACC.
CCI Approves Merger of HDFC Bank and HDFC Limited
The CCI has given approval for the merger of HDFC Limited, India’s largest housing finance company and HDFC Bank, India’s largest private sector bank.
- The proposed combination involves amalgamation of HDFC Limited, HDFC Bank, HDFC Investments and HDFC Holdings.
- The proposal has already received the approval of NSE Limited and BSE Limited, stock exchanges and the pension regulator Pension Fund Regulatory and Development Authority (PFRDA).
i.Background – In April 2022, the Boards of HDFC Limited and HDFC Bank had approved the biggest merger and amalgamation transaction of HDFC Bank and HDFC Limited.
- As of April 2022, the market capitalisation of HDFC Bank was Rs. 8.36 lakh crore (USD 110 billion) and that of HDFC was Rs. 4.46 lakh crore (USD 59 billion).
ii.After the merger, HDFC Bank will be 100 percent owned by public shareholders and existing shareholders of HDFC will own 41 percent of the bank.
Recent related news:
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, 2022.
About Competition of India (CII):
Chairperson – Ashok Kumar Gupta
Establishment – 2003
Headquarters – New Delhi, Delhi