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Mumbai: India’s antitrust regulator has approved Kotak Mahindra Bank’s record $2.4 billion purchase of ING Vysya, it said in an order published on Friday.

In an order of 12 February, made available in the public domain on Friday, the Competition Commission of India (CCI) found that no negative effect on competition could occur through the merger of these two companies, even though they function in the same business sphere. It observed the ING Vysya did not have a significant market share around the country.

According to the terms of the merger, 725 shares of Kotak Mahindra will be awarded to shareholders of ING Vysya for every 1,000 shares they held.

CCI found that the banking sphere had other bigger players making it a competitive market, which would not be affected by the merger.

Kotak had announced its plan to buy ING Vysaya in November 2014, in what analysts predicted was the beginning of a long-awaited consolidation in a crowded banking sector.

The deal is the first major bank takeover since top privately held lender ICICI Bank bought Bank of Rajasthan more than four years ago.

Reuters contributed to this story.

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