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Axis Bank Limited – Competition Commission of India’s unconditional approval for acquisition of Citibank’s Consumer Business.

Khaitan & Co Competition/ Antitrust team successfully obtained the Competition Commission of India’s unconditional approval for the transaction in record time. This is one of the largest deals in India’s financial services space, and a large number of complex overlaps (>10) in the business activities of the parties involved in the transaction.

Axis Bank Limited | Competition Commission of India’s unconditional approval for acquisition of Citibank’s Consumer Business

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HEADINGS

DETAILS

1.

Sector

Banking and Finance

2.

Announcement Date

30-Mar-2022

3.

Completion Date

26-Jul-2022

4.

Name of Client

Axis Bank Limited

5.

Name and Description of Acquirer / Bidder / Investor

Axis Bank Limited

6.

Name and Description of Target / Seller / Investee

Citibank, N.A. and Citicorp Finance (India) Limited

7.

Deal Description

The transaction comprises the sale of the consumer businesses of Citibank India to Axis Bank Limited. The deal also includes the sale of the consumer business of Citi’s non-banking financial company, Citicorp Finance (India) Limited.

8.

Total Consideration

USD 1.6 Billion

9.

Team Members

The core team consisted of Sagardeep Rathi (Partner), Swati Bala (Principal Associate), Alisha Mehra (Senior Associate), Nilav Banerjee (Associate) and Armaan Gupta (Associate).

10.

Role of Firm

KCAT successfully obtained the Competition Commission of India’s unconditional approval for the transaction in record time. The team expertly navigated numerous business overlaps and was successful in obtaining the CCI’s approval through the simpler Form-I, without requiring a detailed investigation.

12.

Unique Feature of Transaction

One of the largest deals in India’s financial services space, and a large number of complex overlaps (>10) in the business activities of the parties involved in the transaction.

Hot Off The PressNews

The Competition Commission of India (CCI) approves the acquisition of stake by Axis Bank Limited, Axis Capital Limited and Axis Securities Limited in Max Life Insurance Company Limited.

Axis Bank Limited provides services in retail banking, which includes retail lending and retail deposits, wholesale banking, payment solutions, wealth management, forex and remittance products, distribution of mutual fund schemes and distribution of insurance policies.

Axis Capital Limited is engaged in the business of providing focused and customized solutions in the areas of investment banking and institutional equities.

Axis Securities Limited is engaged in the business of broking, distribution of financial products and advisory services.

Max Life Insurance Company Limited is Life Insurance company registered with Insurance Regulatory and Development Authority of India (IRDAI). It is engaged in the business of providing life insurance and annuity products and investment plans in India.

The proposed combination approved by CCI relates to increase of shareholding in Max Life Insurance Company Limited (Target) to approximately 9.9% by Axis Bank Limited and acquisition of 2% and 1% shareholding in the Target by Axis Capital Limited and Axis Securities Limited respectively.

Detailed order of the CCI will follow.


Ministry of Corporate Affairs

[Press Release dt. 21-01-2021]

[Source: PIB]