Mauritius-based Sanlam Emerging Markets proposal to acquire 26 per cent in Shriram Financial ventures has got approval from the Competition Commission of India (CCI).
The two parties to the combination had given a notice to the Commission on June 6.
Sanlam Mauritius had proposed to hold not more than 26 per cent stake, through Shriram Chennai, in Shriram Capital Ltd.
This was to be by way of subscribing to equity shares of up to 49.9 per cent of the fully paid-up equity share capital of Shriram Chennai.
Sanlam joined hands with Shriram Group five years back to launch Shriram Life Insurance Company Ltd, with a 26 per cent stake.
After this, the partners launched a non-life insurance company Shriram General Insurance Ltd, in which also Sanlam took 26 per cent.
Shriram Capital Ltd (SCL) is a part of the Rs 30,000-crore Shriram Group. The estimated investment is Rs 2,000 crore.
SCL is the holding company for the financial services and insurance entities of the Shriram Group.
SCL is also the promoter of Shriram Life Insurance Company Ltd.
The Competition Commission in its order said currently Sanlam Group is not actively involved in any business activity except holding 26 per cent in Shriram General Insurance Company Ltd and Shriram Life Insurance Company.
It said even after the proposed combination, Sanlam will continue to hold not more than 26 per cent stake in these companies.
Sanlam and Shriram Group are not competitors in the markets of other financial services, and thus, the proposed combination is not likely to give rise to any adverse competition concerns.