NEW DELHI: Fair Trade Regulator Competition Commission of India (CCI) approved the merger of IDFC Ltd at IDFC FIRST Bank. IDFC FIRST Bank is engaged in the business of providing banking services, while its parent company IDFC Ltd (IDFCL) is an RBI registered non-banking financial company.
The deal comes with conditions including the merger of IDFC Financial Holding into IDFC Ltd in the first step and subsequently the merger amalgamation of IDFCL with IDFC FIRST Bank.
Further, CCI also approved the cancellation of IDFC Financial Holding’s existing shares in IDFC FIRST Bank and subsequently the issuance of new shares of the bank to the shareholders of IDFCL.
IDFC Financial Holding is a non-operative financial holding company registered with the Reserve Bank of India (RBI).
The Competition Commission said it has approved the deal under the Green Canal Route.
“There are no horizontal overlaps or vertical/complementary links between the parties’ business activities in the country.
“In view of the absence of any horizontal overlap or vertical or complementary linkages between the parties, the transaction is notified through the green channel route,” CCI said.
Under the Green Channel Route, a transaction that does not entail any risk of an appreciable adverse effect on competition is deemed to be cleared once it has been notified to the CCI.
In July, IDFC FIRST Bank announced the merger of parent company IDFC Ltd with itself in an all-stock transaction.
Also planks of IDFC FIRST Bank and IDFC have approved the reverse merger and said that the composite merger plan includes the merger of IDFC and IDFC Financial Holding Company with IDFC First Bank.
The deal comes with conditions including the merger of IDFC Financial Holding into IDFC Ltd in the first step and subsequently the merger amalgamation of IDFCL with IDFC FIRST Bank.
Further, CCI also approved the cancellation of IDFC Financial Holding’s existing shares in IDFC FIRST Bank and subsequently the issuance of new shares of the bank to the shareholders of IDFCL.
IDFC Financial Holding is a non-operative financial holding company registered with the Reserve Bank of India (RBI).
The Competition Commission said it has approved the deal under the Green Canal Route.
“There are no horizontal overlaps or vertical/complementary links between the parties’ business activities in the country.
“In view of the absence of any horizontal overlap or vertical or complementary linkages between the parties, the transaction is notified through the green channel route,” CCI said.
Under the Green Channel Route, a transaction that does not entail any risk of an appreciable adverse effect on competition is deemed to be cleared once it has been notified to the CCI.
In July, IDFC FIRST Bank announced the merger of parent company IDFC Ltd with itself in an all-stock transaction.
Also planks of IDFC FIRST Bank and IDFC have approved the reverse merger and said that the composite merger plan includes the merger of IDFC and IDFC Financial Holding Company with IDFC First Bank.
