Axis Bank’s proposed acquisition of Citibank’s consumer banking businesses in India moved a step forward towards closure with the competition watchdog CCI giving its approval for the ₹12,325 crore mega deal.
“Commission approves acquisition of Citibank NA’s and Citicorp Finance (India) Limited’s undertakings comprising of their consumer banking activities by Axis Bank”, the CCI tweeted on Tuesday.
The approval has come faster than expected as MD and CEO Amitabh Chaudhary had in the earnings call on Monday, had said that the bank expects the approval to take another 6-8 weeks.
“We are very grateful that it’s come sooner than anticipated, but without or without it, work is in progress anyway,” Deputy Managing Director Rajiv Anand told BusinessLine.
“We’ve been guiding that this should come to fruition somewhere in the last quarter of this year, so we stand by that,” he said.
On Tuesday, Axis Bank’s shares closed in the National Stock Exchange at ₹706.40 apiece, down ₹20.95 over the previous day’s close.
It may be recalled that the proposed combination — announced on March 30 this year—involves the slump sale by Citi of an undertaking comprising its consumer banking activities to the Acquirer on a going concern basis and the proposed slump sale by Citicorp of an undertaking comprising its consumer banking activities to the Acquirer on a going concern basis.
Under the deal, Axis Bank would take over Citi’s credit cards, personal loans and wealth management businesses in India. The deal is expected to get to a complete closure by September 2024.
Competition Commission has also approved the acquisition of stake in Tata Power Renewable Energy Limited (TPREL) by Greenforest New Energies Bidco Limited.
The proposed combination relates to internal reorganisation of TPREL and acquisition of up to 11.43 per cent of the equity share capital of TPREL by Greenforest.
Greenforest New Energies Bidco Limited (Greenforest) is an investment vehicle indirectly incorporated by BlackRock Alternatives Management, LLC (BAM) and Mubadala Investment Company, PJSC (MIC) for undertaking the proposed combination.
( With inputs from Anshika Kayastha in Mumbai)