Fair trade regulator CCI on Wednesday said it has approved LIC Mutual Fund's acquisition of IDBI Mutual Fund.
Life Insurance Corporation of India (LIC) is the sponsor of LIC Mutual Fund (LIC MF) and the parent entity of LIC AMC and LIC TC.
The proposed combination involves LIC Mutual Fund Asset Management Ltd (LIC AMC) acquiring the rights to manage and administer the schemes of IDBI Mutual Fund (IDBI MF) from IDBI Asset Management Ltd (IDBI AMC), according to an official release.
The Competition Commission of India (CCI) has cleared the deal. It has also given the nod for LIC Mutual Fund Trustee Pvt Ltd's (LIC TC) acquisition of the rights of trusteeship of the schemes of IDBI MF from IDBI MF Trustee Company Ltd (IDBI TC).
Post transaction, the schemes of IDBI MF will form part of LIC MF with LIC AMC acting as the asset management company for the schemes of IDBI MF. LIC TC will act as the trustee company of the schemes of IDBI MF, the release said.
Apart from lump sum consideration, IDBI AMC will also acquire certain non-controlling shareholding in LIC AMC, it added.
IDBI Bank is the sponsor of IDBI MF and IDBI AMC acts as the asset management company to the IDBI MF while IDBI TC acts as the trustee company of IDBI MF.
Deals beyond a certain threshold require approval from the regulator, which keeps a tab on unfair business practices in the market place.