On December 10, 2019, CCI approved an increase in the stake held by Caisse de dépôt et placement du Québec (‘CDPQ’) in Piramal Enterprises Limited (‘PEL’) through the subscription of compulsorily convertible debentures (‘CCDs’), issued and allotted by preferential issue (once converted, equity shareholding of CDPQ will increase from 3.68% to 8.99%)[1].

CDPQ, a part of the CDPQ Group, is an institutional fund, which manages and serves depositors comprising public and private pension and insurance funds in Quebec, Canada. In India, CDPQ is present through a number of entities such as CDPQ India Private Limited (‘CDPQ India’), Ivanhoe Cambridge Investment Advisory (India) Private Limited (‘Ivanhoe Cambridge India’), Edelweiss Assets Reconstruction Company (‘EARC’), etc.

PEL belongs to the Piramal group and operates in financial services, pharmaceuticals and healthcare insights and analytics. PEL is present in the financial services sectors through the following entities, i.e., India Resurgence Fund (‘IndiaRF’), India Resurgence ARC Private Limited (‘IRARC’), Shriram Capital Limited (‘SCL’), etc.

There are horizontal overlaps between the parties to the combination in the broader business segments of loans/lending services and asset reconstruction services. CCI observed that: (i) CDPQ’s presence (through EARC) in asset reconstruction services segment may exhibit a potential vertical with PEL’s loan/lending services; and (ii) a potential vertical relation also exists between PEL’s presence (through IRARC) in asset reconstruction services segment with CDPQ’s loans/lending services. However, CCI approved the combination since these horizontal and vertical overlaps are unlikely to cause an appreciable adverse effect on competition in India.[1] Combination Registration No. C-2019/10/704.