 "cci")
In FY24, TCL and TMFL reported a profit after tax of Rs 3,150 crore and Rs 52 crore respectively. | Photo: PTI
The Competition Commission of India (CCI) on Tuesday cleared the proposed merger of Tata Motors Finance Ltd into Tata Capital Ltd.
Tata Capital Ltd (TCL) is a subsidiary of Tata Sons and is operating as a non-banking financial company Investment and Credit Company (NBFC-ICC).
TCL is engaged primarily in the business of lending, leasing, factoring, financing and distributing financial products.
“CCI approves the proposed merger of Tata Motors Finance Ltd with and into Tata Capital Ltd,” the regulator said in a post on X.
Tata Motors Finance Ltd (TMFL) operates as an NBFC-ICC and is engaged in the business of granting loans and facilities for financing the purchase of new vehicles manufactured by Tata Motors and its group companies.
TMFL also refinances existing vehicle finance loans. It is a step-down wholly-owned subsidiary of Tata Motors Ltd.
In June this year, Tata Motors, TCL and TMFL’s board approved a merger of TMFL with TCL through an NCLT scheme of arrangement.
As consideration for the merger, TCL will issue its equity shares to the shareholders of TMFL resulting in TML effectively holding a 4.7 per cent stake in the merged entity.
In FY24, TCL and TMFL reported a profit after tax of Rs 3,150 crore and Rs 52 crore respectively.
The transaction is also in-line with TML’s stated objective of exiting non-core businesses and focus its capital spends on emerging technologies and products.
The deals beyond a certain threshold require approval from the regulator, which keeps a tab on unfair business practices as well as promotes fair competition in the marketplace.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
First Published: Sep 10 2024 | 7:41 PM IST
