On July 26, 2019, CCI approved the acquisition of 49.9% equity shareholding of Sundaram BNP Paribas Home Finance Limited ('SHFL') by Sundaram Finance Limited ('SFL'). The acquisition resulted in SHFL becoming a wholly owned subsidiary of SFL since SFL held 50.1% of the equity shares of SHFL prior to the combination. 1
SFL is a deposit-taking non-banking financial company registered with the RBI and is primarily engaged in financing purchase of commercial vehicles, cars, construction equipment and tractors. SHFL, a housing finance company, is a joint venture between SFL and BNP Paribas Personal Finance SA ('BNPP').
CCI observed that even though SFL's distribution activity of financial products is vertically placed to the housing finance business of SHFL, the value of housing finance products distributed by SFL, for other financial institutions has not been significant to raise any competition concerns. Accordingly, CCI approved the combination.
Footnotes
1 Combination Registration No. C-2019/06/670.
Published In:Inter Alia Special Edition- Competition Law - September 2019 [ English
Date: September 21, 2019
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