Leading non-banking finance company Shriram City Union Finance has got fair trade regulator CCI's approval for a proposed merger of its two group companies through a multi-stage transaction.
In an order released today, the Competition Commission of India (CCI) said it is approving the deal as the proposed transaction is between entities from same group and is "not likely to raise any adverse competition concern in India".
As per the proposed transaction, Shriram Enterprise Holdings Pvt Ltd (SEHPL) would be first amalgamated with Shriram Retail Holdings Pvt Ltd (SRHPL) and thereafter the consolidated entity would be merged into Shriram City Union Finance Ltd (SCUFL).
SEHPL is currently a wholly-owned subsidiary of SRHPL and after the completition of all stages of the transaction, SCUFL would remain as the single "surviving entity", the companies had said in their application for CCI approval.
Further, as per the notice, 51% stake in SRHPL is held by Shriram Capital Ltd (SCL) and the rest 49% by TPG India Investment Ltd.
Moreover, SRHPL holds 50.67% stake, while SCL holds 4.38% in SCUFL, the rest is held by public shareholders, CCI said in order dated December 11.
Also Read
Following the merger, SCL would hold 30.4% in SCUFL, TPG India Investment would hold 25.04% while the rest would be held by public shareholders.
Another subsidiary of SCUFL, Shriram Housing Finance would continue to remain a subsidiary of SCUFL, CCI said.