CCI Approves Major Acquisitions in Financial and Pharmaceutical Sectors

Tags: Economy/Finance

Competition Commission of India (CCI) approved the acquisition of up to approximately 11% shareholding by South Korea Based Shinhan Bank Co., Ltd. in HDFC Credila Financial Services Limited.

An Overview of the News

• Shinhan Bank is part of the Shinhan Financial Group, which has been operating in India since 1996.

• HDFC Credila is a registered non-deposit taking Non-Banking Financial Company (NBFC) that provides education loans in India and overseas.

Matrix Pharma's Acquisition of Tianish Laboratories:

• CCI granted approval for Matrix Pharma Private Limited to acquire 100% stake in Tianish Laboratories Private Limited.

• Mudhra Labs Private Limited, the parent company of Matrix Pharma, will make a partial investment in optionally convertible debentures to support the transaction.

• Kingsman Wealth Fund PCC's investment in Compulsory Convertible Preference Shares (CCPS) of Mudhra Life Sciences, Matrix Pharma's parent company, was also approved by CCI on May 28, 2024.

• The funds from these investments will be utilized by Matrix Pharma for the acquisition of Tianish Laboratories.

• Incorporated in 2023, Tianish Laboratories Private Limited is engaged in the manufacture and sale of active pharmaceutical ingredients in India.

About CCI

• CCI, under the Ministry of Corporate Affairs, enforces the Competition Act of 2002.

• It ensures fair competition and investigates cases hindering market competition.

  • Formed -14 October 2003

  • Headquarters - New Delhi

  • Chairperson - Ravneet Kaur

  • Secretary - Jyoti Jindgar Bhanot