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 12th position in industry rankings from the 21st 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.
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