On September 18, 2020, CCI approved UV Asset Reconstruction Company Limited’s (‘UVARCL) acquisition of the entire existing business operations and assets of Reliance Communications Limited (‘RCOM’) and Reliance Telecom Limited (‘RTL’), pursuant to proceedings under the IBC.^[1]

UVARCL is an asset reconstruction company, which acquires non-performing assets from banks and other financial institutions and resolves the acquired assets with a resolution strategy as deemed fit in each case.

RCOM was previously engaged in the provision of various telecommunications services in India such as global systems for mobile communication services (voice, 2G, 3G, 4G), fixed line broadband and voice services, and direct-to-home services. However, at the time of filling notification with CCI, RCOM was active only in the enterprise business, i.e. providing solutions designed to integrate multiple facets of a company’s business through the interchange of information from various business process areas and related databases. Similarly, its subsidiary, RTL, was active only in the bulk SMS business.

CCI observed that UVRACL had also submitted a resolution plan to acquire and monetize Aircel Limited (‘Aircel’) and its two wholly owned subsidiaries Aircel Cellular Limited and Dishnet Wireless Limited (collectively, ‘Aircel Entities’).

CCI observed certain overlaps with the Aircel Entities. However, in light of the Aircel Entities no longer being operational, and RCOM also ceasing most of its operations, CCI left the exact delineation of the relevant market open. Nevertheless, the parties submitted market shares showing low concentration, and minor increases in combined market shares. Accordingly, CCI granted its approval.

^[1] Combination Registration No. C-2020/08/761