LIC Mutual Fund-IDBI Mutual Fund Agreement Has Been Approved By The Competition Commission.

According to CCI, the purchase of IDBI Mutual Fund by LIC Mutual Fund has been authorized. The sponsor of the LIC Mutual Fund (LIC MF) and the parent company of LIC AMC and LIC TC are the Life Insurance Corporation of India (LIC).

According to a press release, the proposed combination calls for IDBI Asset Management Ltd. (IDBI AMC) to sell its management and administration rights over the IDBI Mutual Fund (IDBI MF) schemes to LIC Mutual Fund Asset Management Ltd. (LIC AMC). The agreement has been approved by India’s Competition Commission (CCI). Also, it has approved the transfer of trusteeship powers for IDBI MF schemes from IDBI MF Trustee Company Ltd. to LIC Mutual Fund Trustee Pvt. Ltd.

After the deal, the IDBI MF schemes would be a part of LIC MF, with LIC AMC serving as the asset management firm for the IDBI MF schemes. According to the press release, LIC TC will serve as the trustee firm for the IDBI MF schemes. In addition to paying a flat payment, IDBI AMC would also purchase certain non-controlling shares of LIC AMC, it was noted.

The sponsor of IDBI MF is IDBI Bank, while IDBI AMC and IDBI TC respectively serve as the fund’s asset management and trustee companies. Transactions that exceed a predetermined level require regulator permission, which maintains an eye on unethical commercial activities in the marketplace.

To clear $1.3 billion in transactions, India’s competition authority may demand significant changes.

According to persons with knowledge of the situation, the Competition Commission of India (CCI) has cleared the way for the clearance of significant merger and acquisition (M&A) agreements. Due to the CCI’s lack of quorum, at least 20 combination projects totaling $1.3 billion have been stalled over the previous four months.

With a quorum requirement of three members, the CCI presently only has two members, one of whom serves as chair. According to sources, the government’s top legal officials have advised that the quorum requirement be removed because it will take time to nominate a new chairman and other members.

The law ministry has given the Ministry of Corporate Affairs (MCA), the coordinating organization for the CCI, permission to use the theory of necessity. Also, it has been learned that the first round of M&A approvals may occur as early as this Friday, and other agreements may be approved the following week.

Due to the lack of a full-time chairperson and the necessary quorum, CCI approached the Ministry of Corporate Affairs to request a waiver of the quorum requirement for the approval of merger and acquisition (M&A) proposals, foreign direct investment (FDI) proposals, and corporate insolvency resolution cases.

Sangeeta Verma, the interim chairperson of the Competition Commission of India (CCI), has her term extended by the MCA till further orders. As the full-time chairperson Ashok Kumar Gupta resigned, Verma was named the interim chairwoman in October of last year.

CCI Approves Significant Company Restructurings and Acquisitions across Several Industries

The Competition Commission of India gave its blessing to certain important corporate deals in the country (CCI). After a hiatus of more than three months, the CCI resumed its review of mergers and acquisitions and approved a number of agreements.

Each transaction that exceeds a certain threshold needs CCI clearance. Sadly, the lack of a quorum prevented the agency from reviewing mergers and acquisitions when Chairman Ashok Kumar Gupta left on October 25, 2022. The CCI only has two members at the moment, and the chair position is vacant.

To investigate mergers and acquisitions, sometimes referred to as “combinations” in CCI language, the fair trade regulator needs a quorum of three members. The agreements that were approved today follow the directive issued by the corporate affairs ministry earlier this month, which allowed the regulator to apply the “doctrine of necessity” when examining mergers in light of the rising number of acquisitions that needed CCI permission.

Hindustan Infralog Private Limited (HIPL) would be merged with Hindustan Ports Private Limited (HPPL) after the National Investment and Infrastructure Fund (NIIF) gets permitted to purchase up to 25 percent of the company’s shares in HPPL. The shares will be purchased by the NIIF under specific terms and circumstances. The NIIF is especially interested in investing in areas of essential infrastructure.

The subscription of Hero Future Energies Global’s CCP shares by Ardor Holdings II has been approved by CCI. The CCI has authorized Ardor Holdings II Pte. Ltd. to purchase compulsorily converted preference shares of Hero Future Energies Global Ltd. Investment funds administered by KKR & Co.

CCI approves Archroma’s acquisition of Huntsman’s textile effects business: Archroma Operations S.à.r.l., a Luxembourg-based manufacturer of a variety of chemicals used in the textile, paper, coatings, construction, and adhesive industries, has been given CCI approval for the acquisition of Huntsman International’s textile effects business.

Keimed’s internal restructuring of a few subsidiaries is allowed by the CCI: Following Section 31(1) of the Competition Act of 2002, the CCI has given its approval to Keimed Private Limited’s internal restructuring of a few subsidiaries. Together with its 44 subsidiary businesses, Keimed specializes in the wholesale sale and distribution of medical supplies, healthcare and wellness items, and pharmaceutical products throughout India.

Megha Engineering and Infrastructures Ltd have been given CCI’s approval to purchase all of Lanco Anpara Power Limited’s equity and preference shares. The Competition Commission of India (CCI) has granted permission under Section 31(1) of the Competition Act, 2002 for Megha Engineering and Infrastructures Ltd (MEIL) to purchase all of Lanco Anpara Power Limited and preference shares. In the proposed merger, MEIL or a wholly-owned subsidiary would buy all of LAPL’s equity and preference shares.

Edited by Prakriti Arora