New Delhi: The Competition Commission of India (CCI) has approved mortgage lender Dewan Housing Finance's proposed buying of 50 per cent stakes each in two arms of US-based PGLH of Delaware Inc, saying the deal did not raise anti-competitive concerns in the country.
Under the deal, Dewan Housing Finance Corporation Ltd proposes to purchase 50 per cent shareholding in Pramerica Asset Managers Private Ltd and Pramerica Trustees Private Ltd from PGLH.
Following the transaction, the entities would become 50:50 joint ventures between Dewan Housing and PGLH.
Consequent to the acquisition, Dewan Housing would also acquire a joint control on Pramerica Mutual Fund.
In an order dated December 30, 2014 but made public on Friday, the fair trade regulator (CCI) said that "the proposed combination is not likely to have appreciable adverse effect on competition in India".
CCI observed that Dewan Housing and its associated companies were not engaged in the provision of services pertaining to mutual funds.
"As a result, there is no horizontal overlap in services provided by the parties in relation to mutual funds," the competition watchdog said.
CCI also noted that while Arthveda Fund Management - part of Dewan Housing - and Pramerica Asset Managers provide asset management services, these were "intended for different usage".
"While Arthveda focuses on alternative investment funds, the Target AMC (Pramerica Asset Managers) provides asset management services exclusively to the Target MF (Pramerica Mutual Fund) for the mutual fund schemes," CCI said.
CCI also noted that "Arthveda has only insignificant assets under its management in comparison to the total market size of the portfolio management services in India, the proposed combination is not likely to affect the competition in the portfolio management services in India".
Dewan Housing had entered into an agreement with PGLH in October 2014 following which it had sought approval from CCI in November, last year.