CCI approves 7 proposals involving acquisition of shares across companies

New Delhi, Apr 3 (Agency) In a slew of decisions, the Competition Commission of India (CCI) on Tuesday approved seven proposals that include acquisition of shares partly or 100 per cent in transactions involving MG Motors, Max Life Insurance, Sharekhan Limited and others. The CCI has approved the acquisition of shares of MG Motor India Private Limited by IndoEdge India Fund – Large Value Fund (LVF) Scheme. The proposed combination relates to the acquisition of up to approximately 8 per cent of the share capital (8.70 per cent of the voting and economic rights) of the MG Motor India Private Limited (target) along with certain rights by the IndoEdge India Fund – LVF Scheme (Acquirer)).

The Target is a company incorporated in India, engaged in the automobile original equipment manufacturing business and after sale services. The Target is primarily engaged in the manufacture and sale of passenger cars (including electronic vehicles) under the Target’s brand ‘MG’. In another approval, the Commission has also approved the subscription to 14,25,79,161 equity shares of Max Life Insurance Company Limited by Axis Bank Limited. Axis Bank is an Indian private sector bank involved in the business of banking. Axis Bank provides services in retail banking, which includes retail lending and retail deposits; wholesale banking; payment solutions; wealth management; forex and remittance products; distribution of mutual fund schemes and distribution of insurance policies. Max Life Insurance is engaged in the business of providing life insurance and annuity products and investment plans in India. In another decision, the CCI has approved the acquisition of 10.39 per cent shareholding of Annapurna Finance Private Limited and subscription to its certain debentures by Piramal Alternatives Trust.

Piramal Alternatives Trust is a trust belonging to Piramal Enterprises Limited. Piramal Alternatives Trust is a fund management business that provides customised financing solutions to high-quality corporates through – ‘Piramal Credit Fund’, a performing, sector-agnostic credit fund; and ‘IndiaRF’, a distressed asset investing platform, which invests in equity and/or debt across non-real estate sectors. Annapurna Finance Private Limited is a non-deposit-taking non-banking financial company registered with the Reserve Bank of India under the Reserve Bank of India Act, 1934. It is engaged in the provision of microfinance and/or other loans to micro-entrepreneurs, micro, small and medium enterprises in India and the provision of low/affordable housing finance to customers and is classified as an NBFC-micro finance institution. The Commission also approved acquisition of 100 per cent equity stake of Sharekhan Ltd. and Human Value Developers Pvt. Ltd. collectively by Mirae Asset Capital Markets (India) Pvt. Ltd. and Mirae Asset Securities Co. Ltd., respectively. Mirae Asset Securities Co. Ltd. (MAS) is a public limited company currently listed on the Korea Exchange, having wealth management, investment banking, sales and trading, and principal investment as its principal businesses, among others. Mirae Asset Capital Markets (India) Pvt. Ltd. (MACM) is a financial advisory, brokerage firm and is a wholly owned subsidiary of MAS. MACM offers broking, advisory, and investment banking services to various retail and institutional clients in India.

Sharekhan Ltd. (SKL) is currently engaged in the business of stock broking, commodities / currency derivatives broking and related product and services including exchange margin funding, depository participant services, mutual fund distribution and distribution of other financial product(s) and any such distribution activities for third party providers, portfolio management services and research analyst services. In another approval, the CCI has given go ahead for the acquisition of Compulsorily Convertible Preference Shares (CCPS) in Northern Arc Capital Limited (Northern Arc/Target) by the International Finance Corporation (IFC). In all the CCI approved seven proposals.