On 14th June 2022, the Competition Commission of India (CCI) approved the following proposed transactions:
- Acquisition of 24.98% shareholding of IIFL Wealth Management (IIFLWM) Limited by BC Asia Investments X Limited(BC Asaia)
- Sale of global biosimilars portfolio of Viatris Inc. to Biocon Biologics Limited (Biocon Biologics) and equity infusion in Biocon Biologics by Biocon and Serum Institute Life Sciences Private Limited.
- Acquisition of Corporate restructuring of GlaxoSmithKline(GSK) Consumer Healthcare Holdings Limited(JVCO).
- Acquisition of entire shareholding in Air Asia India by Air India.
Acquisition of 24.98% shareholding of IIFL by BC Asia:
The CCI has approved the acquisition of up to 24.98% shareholding of IIFL Wealth Management Limited(IIFL) by BC Asia Investments X Limited(BC Asia).
- Acquirer: BC Asia Investments X Limited(BC Asia).
- Target: IIFL Wealth Management Limited (IIFLWM)
Points to note:
- BC Asia, incorporated under the laws of Mauritius, is an investment holding company. BC Asia is indirectly held by funds controlled by Bain Capital Investors, LLC (Bain Private Equity), Bain Capital Credit Member LLC and Bain Capital Member II (together Bain Credit) and the Canadian Pension Plan Investment Board (CPPIB).
- IIFLWM is a private wealth management firm based in Mumbai, Maharashtra.
Sale of global biosimilars portfolio of Viatris Inc to Biocon Biologics:
CCI has approved the sale of the global biosimilars portfolio of Viatris Inc. to Biocon Biologics Limited (Biocon Biologics) and an equity infusion in Biocon Biologics by Biocon and Serum Institute Life Sciences Private Limited (Serum), a subsidiary of Serum Institute of India Private Limited(SII).
The proposed transaction involves the sale of the global biosimilars portfolio of Viatris Inc, the indirect parent entity of Mylan Inc to Biocon Biologics and its subsidiary for cash and stock consideration and acquisition of one common equity share and compulsory convertible preference shares convertible into common equity shares, representing at least 12.9% of the fully diluted equity of Biocon Biologics by Mylan as part of the consideration for the acquisition of the global biosimilars portfolio of Viatris Inc.
This is in line with the transaction agreement between Viatris and Biocon Biologics signed on 27th February 2022.
Points to note:
- Mylan, an indirect subsidiary of Viatris is a Pennsylvania corporation.
- Viatris based in Canonsburg, Pennsylvania, is a global pharmaceutical company that focuses on bringing high-quality medicines to patients in over 165 countries and territories.
- Biocon Biologics, a subsidiary of Biocon Ltd focused on Biocon’s biosimilars business, is a company limited by shares. It is involved in manufacturing and commercialization of pharmaceutical formulations like biosimilars, insulins and drug substances in India.
Acquisition of Corporate restructuring of GlaxoSmithKline(GSK) Consumer Healthcare Holdings Limited:
Under Section 31(1) of the Competition Act, 2002, the CCI has approved the acquisition of the Corporate restructuring of GlaxoSmithKline Consumer Healthcare Holdings Limited (JVCO).
The proposed combination involves the corporate restructuring of JVCO through acquisition by Haleon via demerger and the share exchange steps involving the shareholders of JVCO.
This follows the completion of the demerger and shares exchange steps. The shareholding of Haleon will be held by a combination of GSK, GSK’s affiliates and GSK’s shareholders, which represents a total of 68% of Haleon’s voting rights, and Pfizer, which represents the 32% of Haleon’s voting rights.
Points to note:
- GSK is a pharmaceuticals company based in the United Kingdom(UK), which is active in the research, development, manufacturing, and marketing of prescription pharmaceuticals, vaccines and consumer healthcare products.
- Pfizer is a research-based biopharmaceutical company involved in the research, development, manufacturing, and marketing of innovative medicines.
- Haleon is a newly incorporated entity which at present do have any business activities.
- JVCO is engaged in the manufacture and distribution of consumer healthcare products.
Acquisition of entire shareholding in Air Asia India by Air India.
The CCI has approved the acquisition of the entire equity share capital of AirAsia (India) Private Limited (Air Asia India) by Air India Ltd. (AIL), a wholly-owned subsidiary(indirect) of Tata Sons Private Limited (TSPL).
At present, TSPL hold 83.67% of the equity share capital of Air Asia India.
Points to note:
- Air India Ltd. (AIL) and its wholly owned subsidiary Air India Express Limited (AIXL) is engaged in providing domestic and international scheduled air passenger transport service, domestic air cargo and charter flight services in India.
- Air Asia India, operating under brand name “Air Asia” is a joint venture of TSPL(83.67%) and Air India Investment Limited (AAIL) (16.33%). Air Asia also provides domestic and air cargo services along with charter flight services in India. It does not offer service on international routes.
Recent Related News:
i.The Competition Commission of India (CCI) has approved the acquisition of the shareholding in Busybees Logistics Solutions Private Limited, which operates in India under the brand name ‘Xpressbees’ by BXG Xenon HoldCo Limited and TPG SF
ii.The Competition Commission of India, Government of India has approved the acquisition/merger of two proposed deals –
- Acquiring Majority Stake in Magma HDI General Insurance by Sanoti Properties LLP.
- Merger of Cloudshield Technologies Private Limited with Biocon Biologics by Serum Institute of Life Sciences.
About Competition Commission of India (CCI):
Chairperson– Ashok Kumar Gupta
Headquarters– New Delhi, Delhi