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CCI Approves Aditya Birla Fashion and Retail Ltd- Flipkart Investments Pvt Ltd Deal, Axis- Max life Deal & Altico-Ares SSG Deal

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stake in Aditya Birla Fashion and RetailOn January 20, 2021 Competition Commission of India (CCI) has approved the following  deal:

Flipkart Investments Private Ltd Acquires 7.8% Stake in Aditya Birla Fashion and Retail Ltd 

i.CCI gave approval for the acquisition of 7.8% minority stake in Aditya Birla Fashion and Retail Limited (ABFRL) by Flipkart Investments Private Limited (FIPL) on a fully diluted basis. The deal is worth Rs 1,500 crore.

ii.The acquisition will happen through subscription of equity shares.

iii.After the deal is completed the promoter and promoter group companies of ABFRL will hold about 55.13% stake

About Aditya Birla Fashion and Retail Limited (ABFRL)

It is part of the Aditya Birla group
Head Office– Mumbai, Maharashtra
Managing Director– Ashish Dikshit

About Flipkart Investments Private Limited (FIPL):

FIPL is a newly incorporated company and is a wholly owned subsidiary of Flipkart Private Limited (FPL). FPL belongs to the Walmart Group.

Axis Bank, Axis Capital and Axis Securities Acquires ~12.9% Stake in Max Life Insurance Company Ltd

CCI has given approval to the deal between Max Life Insurance Company Ltd and Axis entities(Axis bank Ltd, Axis Capital ltd and Axis Securities Ltd).

Proposed Combination

  • About9% stake in Max life insurance will be acquired by Axis Bank.
  • Axis Capital and Axis Securities will acquire 2% and 1% stake respectively in Max Life Insurance.

Note

Additionally the Axis entities has the right to acquire additional stake upto 7% in Max life,  in one or more tranches, taking their total stake to 19.99%

About Max Life Insurance Company Ltd:
Headquarters– New Delhi, India
MD & CEO– Prashant Tripathy

Ares SSG Acquires Altico Capital India Ltd 

CCI under Section 31(1) of the Competition Act, 2002 gave approval to the acquisition of Altico Capital India Ltd (Altico) by Ares SSG Capital Management (Singapore) Pte. Ltd (Ares SSG).

Proposed Combination

As per the proposed combination, the loan assets of Altico will be acquired by India Special Situations Scheme II (ISSS II), Investment Opportunities V Pte. Limited (IOV) and Assets Care & Reconstruction Enterprise Ltd (ACRE)  that are the entities identified by Ares SSG.

About India Special Situations Scheme II (ISSS II):

It is a scheme of the India Special Situations Trust, an Alternative Investment Fund. It is registered with the Securities and Exchange Board of India (SEBI) under the SEBI (Alternative Investment Funds-AIF) Regulations, 2012.

About Investment Opportunities V Pte. Limited (IOV):

It is registered as a Foreign Portfolio Investor (FPI) under the SEBI (FPI) Regulations, 2019 and also holds a Category I FPI license.

About Assets Care & Reconstruction Enterprise Ltd (ACRE):

It is an Asset Reconstruction Company (ARC) under the provisions of the Securitization and Reconstruction of the Financial Assets and Enforcement of Security Interest Act, 2002, registered with the Reserve Bank of India(RBI).

About Altico Capital India Limited:

It is an Non Banking Financial Company(NBFC)
Headquarters– Mumbai, Maharashtra

Recent Related News:

i.On November 2, 2020 The Competition Commission of India (CCI) under Section 31(1) of the Competition Act, 2002, approved the acquisition of General Insurance Business of Bharti AXA General Insurance Company Limited (Bharti AXA) by ICICI Lombard General Insurance Company Limited (ICICI Lombard).

ii.On November 20, 2020 The Competition Commission of India (CCI) approved the acquisition of retail and wholesale undertaking and logistics and warehousing undertaking of the Future Group by Reliance Retail Ventures Limited (RRVL) and Reliance Retail and Fashion Lifestyle Limited (RRVL WOS). The approval was given under Section 31(1) of the Competition Act, 2002.

About Competition Commission of India (CCI):

Established by– The Central Government with effect from 14th October 2003
Headquarters– New Delhi, India
Chairman– Ashok Kumar Gupta