The Competition Commission of India (CCI) has approved the acquisition of 100 per cent share capital of L&T Investment Management Limited (LTIM/Target) by HSBC Asset Management (India) Private Limited (HSBC AMC/Acquirer).

It maybe recalled that HSBC AMC had last December announced the acquisition of LTIM in a $425 million deal. LTIM is the investment manager of the mutual fund business of L&T.

Rise in rankings

The acquisition of L&T Mutual Fund (MF) — which had average assets under management (AAUM) of ₹78,273.80 crore in Q2 FY22 — has catapulted HSBC AMC to the 12 th position in industry rankings from the 21 st as of November-end last year. 

HSBC MF had AAUM of ₹11,314.32 crore in the same quarter.

The proposed combination relates to acquisition of 100 per cent equity share capital of L&T AMC by HSBC AMC from L&T Finance Holdings Limited (L&T Sponsor/Seller) and its nominees, an official release said. 

HSBC AMC is the asset management entity for operating the day-to-day functioning of HSBC Mutual Fund schemes (HSBC MF). It is responsible for managing investments of money pooled-in through investments in HSBC MF.

HSBC AMC is a wholly-owned indirect subsidiary of HSBC Holdings PLC (HSBC Group) and belongs to the HSBC Group of companies.