Competition Commission has approved the proposed acquisition of Tata group firm Drive India Enterprise Solutions Ltd (DIESL) by TVS Logistics Services.
Giving its green signal, the fair trade regulator said the deal is not likely to have an appreciable adverse impact on competition in the country.
The transaction between DIESL and TVS Logistics Services Ltd (TVS LSL) was announced in May.
Tata International and Tata Industries are the shareholders in DIESL, which has over 180 warehouses and 6.5 million square foot of storage space, mainly for consumer products.
Under a multi-layered deal, TVS LSL would acquire the entire equity share capital of DIESL. In the second stage, Omega and Tata Capital Financial Services (TCFSL) would buy 11.94 per cent and 1.09 per cent, respectively, in TVS LSL.
Omega is a subsidiary of Tata Opportunities Fund (TOF) LP.
The Competition Commission of India (CCI) said the respective market shares of TVS LSL and DIESL in the business of logistics services in India are insignificant.
"There is no significant horizontal overlap or vertical relationship between the parties to the combination," CCI said in its order dated July 29.
While announcing the deal in May, TVS LSL had said the acquisition would, among other things, help its potential customers.
