The deal, which is valued at an aggregate amount of R1,450 crore, is the largest foreign direct investment (FDI) deal in any Indian asset management company till date. Considering the facts on record and the details provided in the notice...and the assessment of the proposed combination, the Commission is of the opinion that the proposed combination is not likely to have any appreciable adverse effect on competition in India and therefore... approves the proposed combination, CCI said.
The Competition Commission of India (CCI) noted that Nippon Life, which is a global player in providing asset management and portfolio management services, has no direct operations or presence in India in the same space, except for a 26% equity participation in Reliance Life Insurance Company Limited, a subsidiary of RCap.
It is observed from the information available on the website of the Sebi that there are more than 40 other AMCs registered with the Sebi providing services similar to the asset management services provided by RCAML in India and there are more than 250 portfolio managers registered with Sebi providing similar services, it said.
First announced in January this year, Nippon Life will invest an aggregate value of R1,450 crore ($290 million) to acquire 26% stake in Reliance Capital Asset Management Company (RCAML). The transaction pegs the valuation of Reliance Capital Asset Management at around R5,600 crore ($1.1 billion).