The Competition Commission of India (CCI) approves acquisition of stake in IDFC Asset Management Company Limited and IDFC AMC Trustee Company Limited by Bandhan Financial Holdings Limited, ChrysCapital and GIC.

The proposed combination envisages acquisition of 99.96% stake in IDFC Asset Management Company Limited (IDFC AMC) and 100% stake in IDFC AMC Trustee Company Limited (IDFC Trustee) by Bandhan Financial Holdings Limited (BFHL), Lathe Investment Pte. Ltd. (Lathe), Tangerine Investments Limited (CC Entity 1) and Infinity Partners (CC Entity 2).

BFHL is a wholly-owned subsidiary of Bandhan Financial Services Limited. BFHL is set up to act as the promoter of Bandhan Bank Limited and to hold the investment in Bandhan Bank as well as all other financial services entities of the group regulated by the Reserve Bank of India or other financial sector regulators.

Lathe is wholly-owned by GIC (Ventures) Private Limited. Lathe is part of a group of investment holding companies managed by GIC Special Investments Private Limited.

CC Entity 1 is a subsidiary of ChrysCapital IX, LLC (CC IX). CC IX is a private equity fund set up by the ChrysCapital group. CC Entity 2 is a partnership firm.

IDFC AMC is the asset management company to IDFC Mutual Fund (IDMF). IDFC AMC also operates a portfolio management business and acts as an investment manager to IDFC India Equity Hedge Fund, a Category III Alternative Investment Fund. IDFC Trustee has been appointed as the trustee company of IDMF.

Detailed order of the CCI will follow.

Acquisition approval: CCI clears transfer of control of IDFC Asset Management and its trustee to a consortium of investors. The Competition Commission of India approved a combination under which Bandhan Financial Holdings, Lathe (GIC linked) and ChrysCapital entities will acquire 99.96% of IDFC Asset Management Company Limited and 100% of IDFC AMC Trustee Company Limited, effecting a change of control of the asset management, portfolio management and AIF investment management activities related to IDFC Mutual Fund; the parties' group relationships and roles are identified and a detailed CCI order will follow.