CCI has cleared the IndusInd Bank-Reliance Capital deal

IndusInd International Holdings Ltd., IIHL BFSI (India) Ltd., and Aasia Enterprises received approval to acquire stakes in Reliance Capital from the Competition Commission of India on Wednesday. RBI has registered Reliance Capital Ltd. (RCL) as a nonbanking, non-deposit-taking systemically important company (NBFC-CIC-ND-SI). The company provides financial services.

IndusInd International Holdings Ltd., IIHL BFSI (India) Ltd., and Aasia Enterprises are getting a majority share of Reliance Capital Ltd. After the deal is done, these companies will have control over Reliance Capital.

In July, the company that owns IndusInd Bank, called IndusInd International Holdings (IIHL), shared plans to raise $1.5 billion to buy Reliance Capital and increase its ownership in the bank. The board of IIHL, based in Mauritius, also decided to raise its ownership of Reliance Capital from 15% to 26%. In June, the lenders of Reliance Capital accepted a revised bid of Rs 9,661 crore from IndusInd International Holdings. In November 2021, the Reserve Bank of India (RBI) took control of Reliance Capital’s board due to payment issues and serious problems with how the company was being run. For large deals like this, approval from regulators is needed to ensure fair business practices and competition in the market.