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CCI approves Religare acquisition deal
SME News, Thursday, Jan 24, 2013 17:16:20 PM IST
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MUMBAI: The authority that regulates fair trade, Competition Commission of India (CCI) has announced approval of suggested acquisition of the Religare Finvest leasing business for cars, by Magma Fincorp. The SME sector could be brought into the industry mainfold across this segment. In addition, the authority has clarified that there could be no effect on the competition angle with this move. Each of these companies come under the category of Non-Banking Financial Companies (NBFC).
An agreement for the above purpose had been drafted back in December 2012. The agreement had clearly stated that rights, interests and title in "in the vehicles and all receivables arising there from, whether under the lease agreements/vehicles purchase agreement or otherwise, which constitutes the entire leasing portfolio of Religare" would be vested in Magma post-acquisition.
CCI also added “The combined market share of Magma and Religare in the market for car leasing is not significant enough to give rise to any adverse competition concern.”
