Nippon-Reliance Capital Asset Management deal gets CCI nod
Nippon owns 26% of Reliance Capital Asset Management's stakes, which it acquired in 2012 for `1,450 crore
New Delhi: India’s antitrust regulator has cleared Nippon Life Insurance Co.’s acquisition of 9% of Reliance Capital Asset Management Ltd’s share capital.
Japan-based Nippon is engaged in providing life insurance, agency or administrative service to other insurance companies, sale and purchase of government bonds and asset management services globally. Reliance Capital Asset Management, owned by Reliance Capital Ltd, provides asset management services to Reliance Mutual Fund.
The three parties—Nippon, Reliance Capital Asset Management and Reliance Capital—had entered into a share purchase agreement and shareholder’s agreement on 26 November last year.
Though both Nippon and Reliance Capital Asset Management offer similar services, the Competition Commission of India order noted that there wouldn’t be any adverse effect on the market.
Nippon owns 26% of Reliance Capital Asset Management’s stakes, which it acquired in 2012 for ₹ 1,450 crore. The agreement leaves scope for Nippon to acquire up to 49%. Since no change in the ownership of Reliance Capital Asset Management is expected even with a 49% stake, the antitrust watchdog did not find any possible negative effect on the competition in the market.
The commission approved the acquisition on 20 January, and the order was made available on its website on Monday.
PTI contributed to this story.
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