Sachin Bansal's BAC acquisition of Essel MF gets CCI nod under green channel
The Competition Commission of India (CCI) has given its approval under the 'green channel' route to the acquisition of Essel Mutual Fund by a Sachin Bansal-owned entity.
This is the first clearance under the 'green channel' route, a speedier approval mechanism put in place by the regulator.
In a tweet on Monday, the CCI said it has accorded 'green channel' approval for the acquisition of Essel Finance Asset Management Company and Essel Mutual Fund by BAC Acquisitions Pvt Ltd.
BAC Acquisitions is a private company founded by Sachin Bansal, Co-founder of Flipkart, who exited the Walmart-owned ecommerce company as part of a deal in which Walmart bought 77 percent stake in the e-tailer last year.
A joint application by BAC Acquisitions and Essel Finance AMC was considered by the CCI for approval.
"The proposed combination filed in terms of Regulation 5A of the Combination Regulations (i.e. notice for approval of combinations under green channel) shall be deemed to have been approved upon filing and acknowledgement thereof," an official release said.
The green channel concept -- recommended by the high-level panel that reviewed competition law in August -- allows for an automatic system for speedy approval for certain categories of merger and acquisitions.
Under the framework, green channel approvals can be availed in combinations where there are no horizontal overlaps, no existing or potential vertical relationships and no complementary business activities between the combining parties, or their respective group entities, or involving any entity in which any of the combining parties hold shares or have control.
Merger and acquisitions (M&As) or combinations beyond a certain threshold are required to have mandatory approval from the fair trade regulator.
Recently, Sachin Bansal also picked up stake in Chaitanya Rural Intermediation Development Services (CRIDS), pumping in Rs 739 crore in the non-banking financial company.
Sachin, who has been an active investor in the Indian startup ecosystem including, companies like Ola and Bounce, will also assume the role of CEO at CRIDS.
(Disclaimer: Additional background information has been added to this PTI copy for context)
(Edited by Saheli Sen Gupta)