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HDFC-HDFC Bank’s merger receives CCI nod

August 16, 2022

HDFC-HDFC Bank’s merger receives CCI nod
Fair trade regulator Competition Commission of India (CCI) has approved the merger proposal of HDFC Bank and its parent HDFC Ltd.

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.
 
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.”
 
With this merger, the liabilities of HDFC Ltd will be transferred to HDFC Bank.
 
The Bank said it has not approved any plans to raise funds to pay towards such liabilities of HDFC Ltd.
 
The RBI had issued a no-objection certificate for the proposed amalgamation of HDFC and HDFC Bank. The Securities and Exchange Board of India (Sebi), too, had given its in-principle approval for a scheme of amalgamation of various HDFC Group entities as a part of the mega-merger.
 
After the completion of the merger, HDFC Ltd will acquire a 41% stake in HDFC Bank, and all subsidiaries of the housing financier will be owned by the latter. It will take about 12-18 months for the ongoing merger process to be completed.
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