CCI approves proposed merger of Omaxe's promoter group firms

Fair trade regulator Competition Commission of India has approved the proposed merger of realty major Omaxe Ltd's six promoter entities into another promoter group firm Guild Builders.

Approving the proposal, the Commission said the deal is not likely to have an adverse impact on competition.

Under the plan, Omaxe's promoter group entities -- Constellation Capital, SA Finvest, Kautilya Monetary Services, Naj Builders, Green Tech Towers Builders and J B Realcon -- would amalgamate into Guild Builders.

Guild Builders is also a promoter group entity of Omaxe.

In an order dated May 1, Competition Commission of India (CCI) said the "combination is not likely to have an appreciable adverse effect on competition in India and therefore, the Commission hereby approves the combination".

The regulator observed that following the amalgamation, Guild Builders would be the surviving entity holding the same shareholding in Omaxe which "the parties to the combination together hold currently".

Further, control over the activities carried on by the entities and Omaxe, both before and after the proposed combination, rests with the same promoters.

"Therefore, the proposed combination is not likely to give rise to any adverse competition concern in India," it added.

Last month, all the seven entities has approached CCI for its green signal pursuant to the approval of the boards of directors of each of the entities to the combination on March 18, 2013.