CCI clears HSBC’s $425 million purchase of L&T Investment
Premium- The $425 million deal involves HSBC buying the entity from its parent L&T Finance Holdings
NEW DELHI : The Competition Commission of India (CCI) said on Thursday that it has approved HSBC’s acquisition of L&T Investment Management Ltd., the investment manager for L&T Mutual Fund.
The $425 million deal involves HSBC buying the entity from its parent L&T Finance Holdings Ltd. (LTFH). The acquisition is being executed through HSBC Asset Management (India) Pvt. Ltd, an indirect wholly-owned subsidiary of HSBC Holdings plc. It is the asset management entity for operating the day-to-day functioning of HSBC Mutual Fund schemes.
While announcing the deal last December, HSBC had said that this will be another milestone as HSBC delivers on its strategy of becoming a leading wealth manager in Asia. Strengthening HSBC’s asset management business in India will add to its ability to serve the wealth needs of its customers in India as well as those of its growing non-resident Indian customer base across the world, the company said then.
The deal involves acquisition of 100% equity share capital of the asset management company from L&T Finance Holdings Ltd. and its nominees. CCI said that a detailed order will be issued.
CCI also cleared the acquisition of Prione Business Services Pvt. Ltd. by Amazon Asia-Pacific Resources Pvt. Ltd., an indirect wholly owned subsidiary of Amazon.com, Inc., a separate statement from the regulator said on Thursday. Prione Business Services owns Cloudtail India Pvt. Ltd.
This deal relates to purchase of 76% of the equity shares of Prione Business Services by Amazon, which already holds the remaining stake.
Prione Business Services, 76% of which is held by Hober Mallow Trust, offers services to small and medium businesses to run their online businesses efficiently. That includes digital cataloguing, advertising, training and consulting, advisory and value-added services, adopting digital payments, and other services.
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Cloudtail offers products to customers on the online marketplace, www.amazon.in operated by Amazon Seller Services Pvt. Ltd., in addition to wholesale trading of products through online and offline channels, CCI said.
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