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CCI clears HDFC group reorganization, Adani group’s acquisition of cement business

Competition Commission of India (CCI) said on Saturday it has approved the amalgamation of HDFC Limited, HDFC Bank, HDFC Investments and HDFC Holdings.

Housing Development Finance Corporation Limited (HDFC Limited) is a housing finance company registered with the National Housing Bank and is primarily engaged in the business of providing finance to individuals, corporates and developers for the purchase, construction, development and repair of houses, apartments and commercial properties in India.

HDFC Bank Limited (HDFC Bank) is registered with the RBI as a banking company and is engaged in the business of providing a range of banking and financial services including retail banking, wholesale banking and treasury operations through various branches in India.

HDFC Investments Limited (HDFC Investments) is registered with the RBI as a systemically important non-deposit taking non-banking financial company and is engaged in the business of making investments in equity shares, preference shares, venture funds, mutual funds and other securities.

HDFC Holdings Limited (HDFC Holdings) is registered with the RBI as a Systemically Important Non-Deposit Taking Non-Banking Financial Company and is engaged in the business of making investments in equity shares, preference shares, venture funds, mutual funds and other securities.

The proposed combination envisages a two-step amalgamation process.

The first step involves amalgamation of HDFC Investments, HDFC Holdings and with HDFC Limited, such that HDFC Limited will be the surviving entity post this step.

The second step entails amalgamation of the amalgamated HDFC Limited into HDFC Bank, such that HDFC Bank will be the surviving entity.

CCI also said it has cleared the acquisition of stake in Holderind Investments Limited, Ambuja Cements Limited and ACC Limited by Endeavour Trade and Investment Limited.

The proposed combination envisages acquisition of the entire share capital of Holderind Investments Limited by Endeavour Trade and Investment Limited. belonging to the Adani group.

Holderind holds 63.11% of equity share capital of Ambuja Cements Limited and 4.48% of the equity share capital of ACC Limited. Further, Ambuja holds 50.05% of the paid up equity share capital of ACC.

In terms of Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011, Endeavour is required to launch an open offer for further acquisition of up to 26% of the expanded share capital of each of Ambuja and ACC.

Endeavour is a newly incorporated company and belongs to the Adani group. Holderind is a holding company of Ambuja and ACC. Ambuja and ACC are engaged in manufacture of cement in India.

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