On May 8, 2019, CCI approved the acquisition of sole control by Glenville Investments Pte. Limited (‘Glenville’) over TJ Holdings (III) Pte. Limited (‘TJ Holdings’) and increase in its shareholding in CapitaLand Limited (‘CapitaLand’) from 40.79% to 51% (‘Proposed Combination’).[1] Glenville, TJ Holdings and CapitaLand are hereinafter collectively referred to as ‘Parties’. The Proposed Combination also envisaged restructuring of certain businesses between CapitaLand and Ascendas-Singbridge Pte. Limited (‘Ascendas-Singbridge’), which is also a wholly owned subsidiary of TJ Holdings.

Glenville, is a wholly owned subsidiary of investment holding company Temasek Holdings (Private) Limited (‘Temasek’). It is an investment holding company having subsidiaries engaged in real estate development/rental services and building/project consultancy services in India.

TJ Holdings, is present in the real estate development/rental services through its wholly owned subsidiary Ascendas-Singbridge, with a focus on business, science and industrial parks market in India. CapitaLand is headquartered in Singapore, and is primarily engaged in real estate investment, development services, that include, shopping malls, serviced residences, offices and homes.

Considering the overlaps in the real estate sector, the Parties defined the market as ‘real estate development and related services’, as well as the narrower segment of ‘commercial real estate development and related services’ segment, which was taken to include the hospitality segment and ‘Commercial real estate rental services’. CCI however refrained from delineating a relevant market. In its assessment, the proposed transaction did not raise any competition concern, and CCI accordingly approved the Proposed Combination given that: (i) the resultant incremental market share was below 5% in all segments and the combined market shares of the Parties was below 5% at a pan India level (except in Chennai where it is in the range of 5-10%); and (ii) there were no vertical foreclosure concerns arising out of the Proposed Combination.

[1] Combination Registration No. C-2019/03/647