On February 23, 2021, The Competition Commission of India (CCI) approved the acquisition of shares of Tata Communications Ltd (TCL), by Panatone Finvest Ltd. In accordance with the deal, the Panatone Finvest 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%.
- This acquisition is on the lines of divestment of Government of India’s 26.12% equity stake in TCL which was approved by Cabinet Committee on Economic Affairs (CCEA) in December 2020.
- CCI gave this approval under Section 31(1) of the Competition Act, 2002.
Note – Panatone Finvest Ltd is Systemically Important Non-Deposit Taking Core Investment Company (“CIC-ND-SI”) registered with the Reserved Bank of India and is a subsidiary of Tata Sons and belongs to the Tata Group.
–The CCI approved acquisition of glass packaging business of Piramal Glass and shareholding in its subsidiaries, Vivid Glass Trading & certain businesses of Ansapack Pvt Ltd, by PGP Glass, an affiliate of Blackstone Group under Section 31(1) of the Competition Act, 2002.
–It also approved the acquisition of certain shareholding in API Holdings by CDPQ Private Equity Asia under same section of Competition Act, 2002.
- API is the parent entity of the API Holdings group and does not carry out any activity outside India.
- CDPQ Private Equity Asia is present in India through its subsidiary CDPQ India Pvt Ltd (CDPQ India).
Recent Related News:
i.On December 30, 2020, CCI gave the approval to the acquisition of about 8% equity shareholding in API Holdings Private Limited by TPG Growth V SF Markets Pte. Ltd.
ii.On January 1, 2021 SBI Mutual Fund has acquired an additional 86,993 shares in CSB Bank Ltd (formerly The Catholic Syrian Bank Ltd), which consequently raised its stake in the bank to 5.01% from 4.96% earlier.
About Competition Commission of India (CCI):
Chairman– Ashok Kumar Gupta
Headquarters– New Delhi
About Tata Communications Ltd(TCL):
Former Name– Videsh Sanchar Nigam Limited (VSNL)
Managing Director & Chief Executive Officer– Amur Swaminathan Lakshminarayanan (Lakshmi)
Headquarter– Mumbai, Maharashtra