CCI approves Religare's 49% stake sale

According to the deal, reached in September, US-based Invesco is acquiring 49 per cent stake in Religare Asset Management Company and Religare Trustee Company Pvt Limited, which manage assets worth over Rs 14,600 crore for Religare group's mutual fund business.

Invesco is acquiring the stake through a group entity, Invesco Hong Kong Ltd, from Religare Securities Ltd and the deal is estimated to have valued Religare group's mutual fund business at about Rs 1,000 crore.

In its order dated November 8 and released today, CCI said that the deal is not likely to have any "appreciable adverse effect on competition in India" as Invesco does not have any direct or indirect presence in the Indian mutual fund and portfolio management services in the country.

CCI further said that there are more than 40 other registered AMCs (Asset Management Companies) in the country and more than 250 portfolio managers providing their services, implying significant competition prevailing in these markets.

Invesco and Religare group had approached CCI for its approval to the deal in October, pursuant to which the fair trade regulator had sought some additional information. The replies to the CCI queries were submitted on November 1.

CCI observed that New York-listed Invesco is a global investment manager and provides a wide range of investment products and services to retail and institutional investors across the world.

While

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