CCI gives green light to TPG-Sutherland Global deal

Fair trade watchdog CCI has approved Singapore-based TPG Group's proposed purchase of 34.5 per cent stake in BPO services firm Sutherland Global Holdings, saying the deal does not raise anti-competition concerns in India.
Under the proposed deal TPG Group arm TPG SF VI Pte Ltd would acquire up to 34.5 per cent shareholding of US-based Sutherland Global. TPG Group is a global investment firm.
Besides, as a part of the transaction, Sutherland Global would issue convertible preference shares to TPG SF and concurrently redeem certain equity shares from some of its existing shareholders.
In an order released today, the Competition Commission of India (CCI) said that "the proposed combination is not likely to have an appreciable adverse effect on competition in India".

In India, Sutherland Global operates through four indirect subsidiaries -- Sutherland Global Services, Sutherland Development Company, Adventity Global Services and Apollo Health Street.
"It has been observed that none of the portfolio companies of the TPG group in India are engaged in similar activities as that of Sutherland or any of its subsidiaries," CCI said in the order.
"Further, although, as stated by the parties some of the portfolio companies of TPG have some vertical relationship with Sutherland and its subsidiaries, however, such relationship is found to be very insignificant and does not raise any competition concerns," it added.
TPG SF VI Pte Ltd had entered into a 'Securities Purchase Agreement' with Sutherland Global on June 25, this year, following which it had approached the Commission for its approval on July 1.