The deal is subject to conditions, including the merger of IDFC Financial Holding into IDFC Ltd in the first step and subsequently, the amalgamation of IDFCL with IDFC FIRST Bank.
Credit: www.idfcfirstbank.com
New Delhi: Fair trade regulator Competition Commission of India (CCI) on Tuesday approved the merger of IDFC Ltd with IDFC FIRST Bank.
IDFC FIRST Bank is in the business of providing banking services, while its parent IDFC Ltd (IDFCL) is an RBI-registered non-banking financial company.
The deal is subject to conditions, including the merger of IDFC Financial Holding into IDFC Ltd in the first step and subsequently, the amalgamation of IDFCL with IDFC FIRST Bank.
Further, CCI also approved the cancellation of the existing shares held by IDFC Financial Holding in IDFC FIRST Bank and then the issue of new shares of the bank to IDFCL's shareholders.
IDFC Financial Holding is a non-operative financial holding company registered with the Reserve Bank of India (RBI).
The Competition Commission said it has approved the deal under the green channel route.
'There are no horizontal overlaps or vertical/complementary linkages between the business activities of the parties in the country.
'Given the absence of any horizontal overlaps or vertical or complementary linkages between the parties, the transaction is being notified under the green channel route,' CCI said.
Under the green channel route, a transaction which does not raise any risk of an appreciable adverse effect on competition is deemed to be approved on being intimated to the CCI.
In July, IDFC FIRST Bank announced the merger of its parent IDFC Ltd with itself in an all-stock transaction.
Also, boards of IDFC FIRST Bank and IDFC have approved the reverse merger and said the composite scheme of amalgamation includes the merger of IDFC and IDFC Financial Holding Company with IDFC First Bank.