The Competition Commission of India (CCI) approves acquisition by Panatone Finvest Limited (“Acquirer”) of Tata Communications Limited (“TCL”) under Section 31(1) of the Competition Act, 2002, today.

The Proposed Combination envisages the proposed acquisition of such shareholding not exceeding 26.12% by the Acquirer in the Target (“Proposed Combination”). As a result of the Proposed Combination, the Acquirer Group / Tata Group would increase its shareholding from 48.87% to such shareholding not exceeding 74.99%.

The Acquirer is a Systemically Important Non-Deposit Taking Core Investment Company (“CIC-ND-SI”) registered with the Reserved Bank of India and is a subsidiary of Tata Sons and belongs to the Tata Group.

TCL is part of the Tata group and is a facilities-based service provider of a broad range of integrated communications services. It generates revenue from three business segments - wholesale voice, enterprise and carrier data and others. In India, TCL is, directly and indirectly through its subsidiaries, engaged in the following activities:

(i) International Long-Distance services (“ILD”) – voice;

(ii) National Long-Distance services (“NLD”) – voice;

(iii) Undersea cable systems (“UCS”);

(iv) Internet Service Provider (“ISP”), offering connectivity, messaging, Internet telephony; and

(v) Enterprise business providing valued added services

A detailed order of the CCI will follow.

Merger clearance: CCI approves acquisition increasing Tata Group stake in Tata Communications toward a controlling interest. CCI approved a statutory combination under the Competition Act, 2002, allowing Panatone Finvest Limited (a Tata Group CIC-ND-SI) to acquire additional shareholding in Tata Communications Limited, producing a material increase in the group's stake and approaching a controlling interest; Tata Communications is identified as a facilities-based telecom service provider across wholesale voice, enterprise and carrier data, undersea cable systems, ISP services and enterprise value-added services, with a detailed CCI order to follow.