Source: The Hindu Business Line | Title: Sundaram AMC gets CCI nod for Principal acquisition
The Competition Commission of India (CCI) has approved the Sundaram Asset Management Company Ltd’s (SAMC) acquisition of Principal Asset Management, Principal Trustee Company and Principal Retirement Advisors. SAMC, a wholly owned subsidiary of Sundaram Finance, had in January this year announced acquisition of Principal Asset Management business in India for ₹338.53 crore.
Principal Asset Management had assets under management of ₹7,447 crore as of December 2020 with about 90 per cent of this in equity-oriented schemes. “Commission approves acquisition of Principal Asset Management, Principal Trustee Company and Principal Retirement Advisors by Sundaram Asset Management Company,” the CCI said in a tweet.
“This transaction will strengthen our presence in the marketplace with the addition of a range of schemes with a good long term performance track record across the large and mid-cap segments. This will complement our business which has traditionally been weighted towards the mid- and small-cap segment,” Sunil Subramaniam, MD, Sundaram MF, had then said.
This acquisition is being seen as a natural step in Sundaram’s aspiration to become a sizeable player in the asset management industry. Currently, Sundaram has over ₹40,000 crore in assets under management, the majority of which is in equity-oriented schemes.