{Nippon Life Insurance Company} {Reliance Capital Limited} {Reliance Capital Asset Management Limited}
In the first order in the asset management / mutual fund sector, the Competition Commission of India (CCI) approved a combination between Nippon Life Insurance Company, Japan (Nippon), Reliance Capital Limited (RCap) and Reliance Capital Asset Management Limited (RCAML).
The notice was filed pursuant to a share purchase agreement and shareholders' agreement between Nippon, RCap and RCAML by which Nippon agreed to purchase 26% of RCAML from RCAP or other existing shareholders of RCAML.
RCAML has been authorised by the Securities and Exchange Board of India (SEBI) to act as an Asset Management Company (AMC) to Reliance Mutual Fund and is also a SEBI registered portfolio manager.
Nippon operates globally in relation to providing asset management services and portfolio management services but has no direct presence or operations in India except an existing 26% stake in Reliance Life Insurance Company Limited.
The CCI in its order stated, "Further, it is observed from the information available on the website of the SEBI that there are 40 other AMCs registered with SEBI providing services similar to the asset management services provided by RCAML in India and there are more than 250 portfolio managers registered with SEBI providing services similar to the services provided by RCAML in India."
{Reckitt Benckiser Investments India Private Limited} {Paras Pharmaceuticals Limited} {Halite Personal Care India Private Limited}
The CCI approved a combination between Reckitt Benckiser Investments India Private Limited (Reckitt), Paras Pharmaceuticals Limited (Paras) and Halite Personal Care India Private Limited (Halite).
The notice was filed pursuant to approval by the boards of directors of Reckitt, Paras and Halite to a scheme of amalgamation and arrangement under sections 391-394 of the Companies Act, 1956. The scheme consisted of two steps. Firstly, Reckitt would be merged with Paras. Upon completion of the first step, the personal care division of Paras would be demerged into Halite. The parties also filed for condonation for delay in filing of the notice.
Reckitt is a wholly owned subsidiary of Reckitt Benckiser (Singapore) Pte Ltd. Paras is a wholly owned subsidiary of Reckitt. Halite is also a wholly owned subsidiary of Reckitt Benckiser (Singapore) Pte Ltd.
While Reckitt only held shares in Paras and had no separate business of its own, Paras was engaged in the business of manufacture of pharmaceuticals, personal care products and other products. Halite had not commenced business till the date of the notice.
Considering the fact that the ultimate control of the activities of the parties would remain with the same group, the CCI observed that the proposed combination is not likely to give rise to any adverse effect on competition in India.
Copy of the order is here. Copy of the order on condonation of delay is here.
Notice filed on: February 23, 2012
Date of Order: May 8, 2012
The notice was filed pursuant to approval by the boards of directors of Reckitt, Paras and Halite to a scheme of amalgamation and arrangement under sections 391-394 of the Companies Act, 1956. The scheme consisted of two steps. Firstly, Reckitt would be merged with Paras. Upon completion of the first step, the personal care division of Paras would be demerged into Halite. The parties also filed for condonation for delay in filing of the notice.
Reckitt is a wholly owned subsidiary of Reckitt Benckiser (Singapore) Pte Ltd. Paras is a wholly owned subsidiary of Reckitt. Halite is also a wholly owned subsidiary of Reckitt Benckiser (Singapore) Pte Ltd.
While Reckitt only held shares in Paras and had no separate business of its own, Paras was engaged in the business of manufacture of pharmaceuticals, personal care products and other products. Halite had not commenced business till the date of the notice.
Considering the fact that the ultimate control of the activities of the parties would remain with the same group, the CCI observed that the proposed combination is not likely to give rise to any adverse effect on competition in India.
Copy of the order is here. Copy of the order on condonation of delay is here.
Notice filed on: February 23, 2012
Date of Order: May 8, 2012
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