CCI Approves Acquisition by Principal International India Limited from Punjab National Bank

On January 15, 2018, CCI approved the acquisition of 21.38% and 30% of the equity share capital of Principal PNB Asset Management Company Private Limited (‘Target AMC’) and Principal Trustee Company Private Limited (‘Target Trustee’), respectively by Principal International India Limited (‘Principal’) from Punjab National Bank (‘PNB’).[1]

Principal, an investment company, is a wholly owned subsidiary of Principal Financial Services Asia Limited, which in turn is a subsidiary of Principal Financial Services Inc., USA (‘PFSI’), an entity belonging to Principal Financial Group, USA (‘Principal Financial Group’). Principal Financial Group is the sponsor of the Principal Mutual Fund (‘Target MF’). Principal Financial Group (Mauritius), a subsidiary of PFSI, already owns 78.62% and 70% of the equity share capital of the Target AMC and of Target Trustee respectively. Target AMC is an asset management company of Target MF and Target Trustee provides trustee services to Target MF. Both Target AMC and Target MF are joint ventures between the Principal Financial Group and PNB.

CCI observed that Target AMC and Target Trustee are under the joint control of the Principal Financial Group and PNB and post combination, they will be under the sole control of the Principal Financial Group. CCI also noted that there will not be any change in the market dynamics as a result of the acquisition, and accordingly, approved the combination.

[1] Combination Registration No. C-2018/01/543.

Published In:Inter Alia Special Edition Competition Law June 2018 [ English
Date: June 14, 2018