Anti-Trust Body Competition Commission Nod For Merger Of HDFC Bank With HDFC Ltd

New Delhi: Mortgage major HDFC Ltd has received the approval of fair trade regulator Competition Commission of India (CCI) for its merger with subsidiary HDFC Bank. The proposed combination envisages the merger of HDFC Investments and HDFC Holdings with HDFC Ltd in the first step and subsequently, the merger of HDFC Ltd into HDFC Bank.Also Read – Top 10 Biggest Companies In India Lost Nearly Rs 4 Trillion Last Week | Complete List Here

In a tweet on Friday, CCI said it has approved the “proposed combination involving amalgamation of HDFC Limited, HDFC Bank, HDFC Investments and HDFC Holdings.” In April, the country’s largest housing finance company HDFC Ltd announced that it will merge with HDFC Bank. Also Read – HDFC Bank Hikes Interest Rates on Fixed Deposits: Check Revised Interest Rates Here

Deals beyond a certain threshold require approval from the regulator, which keeps a tab on unfair business practices in the marketplace. Also Read – Competition Commission Approves Acquisition of AirAsia India by Air India | Here’s What it Means

The country’s largest mortgage lender by asset size has already received approval from the Reserve Bank (RBI), Securities and Exchange Board of India (SEBI), National Housing Bank (NHB) and the stock exchanges (NSE and BSE) for the proposed merger between HDFC and HDFC Bank.

The merger scheme remains subject to various statutory and regulatory approvals including approvals from the National Company Law Tribunal (NLCT) and the respective shareholders and creditors of the two companies.

The merged entity will have a combined asset base of around Rs 18 lakh crore. The merger is expected to be completed by the second or third quarter of FY24.

Once the deal is effective, HDFC Bank will be 100 per cent owned by public shareholders, and existing shareholders of HDFC will own 41 per cent of the bank.