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CCI approves proposed merger of DHFL and its two arms

Says the proposed combination does not give rise to any adverse competition concerns in India

Press Trust of India  |  New Delhi 

Fair trade regulator has approved the merger of Dewan Housing Finance Corp's two arms -- Holdings and -- with the parent company.

The (CCI) has said the combination is "not likely to have an appreciable adverse effect on competition in India".

Dewan Housing Finance Corporation (DHFL) and are engaged in business of housing finance while Holdings Private Ltd (DHPL) is an investment firm.

In an order dated December 13, noted that DHPL and First Blue are subsidiaries and "the control over the actitvities carried on by First Blue and DHPL, before the combination, is with and will continue to remain with DHFL after the proposed combination".

"In view of the foregoing, the proposed combination does not give rise to any adverse competition concerns in India," noted.

DHFL indirectly holds 67.56% in First Blue through its wholly-owned subsidiary DHPL.

Meanwhile, CCI has decided to initiate a "separate proceeding regarding imposition of penalty" under Competition Act since the three submitted notice seeking approval much late after their respective boards approved the deal.

The Board of Directors of each of the parties to combination cleared the combination scheme on September 28, 2011 but the notice for approval was submitted only on November 19, 2012.

First Published: Thu, December 27 2012. 20:35 IST
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