The Competition Commission of India (CCI) has granted approval to two major transactions, clearing regulatory hurdles for Emirates NBD Bank’s proposed entry into RBL Bank Limited and Tata Steel Limited’s acquisition of a controlling stake in Thriveni Pellets Private Limited (TPPL).
Emirates NBD–RBL Bank Deal Structure
Under the proposed transaction, Emirates NBD Bank plans to acquire a controlling stake ranging between 51% and 74% in RBL Bank. The acquisition will be executed through a combination of measures, including a mandatory open offer under SEBI takeover regulations for up to 26% of RBL Bank’s expanded voting capital.
In addition, Emirates NBD will subscribe to a preferential allotment of equity shares that could represent up to 60% of RBL Bank’s paid-up equity capital. The transaction also involves the amalgamation of Emirates NBD’s Indian banking operations into RBL Bank on a going-concern basis. At present, Emirates NBD operates in India through three branch offices.
Profile of Emirates NBD
Emirates NBD is a publicly listed joint stock company headquartered in Dubai and is traded on the Dubai Financial Market. The banking group has an international presence, including operations in India, and offers a wide range of financial services. These include retail and corporate banking, institutional and Islamic banking, investment and private banking, asset management, global markets and treasury services, as well as brokerage operations.
CCI Clears Tata Steel–Thriveni Pellets Transaction
In a separate decision, the CCI also approved Tata Steel Limited’s acquisition of a 50.01% equity stake in Thriveni Pellets Private Limited from Thriveni Earthmovers Private Limited.
Tata Steel is a listed, integrated steel manufacturer with operations across mining, steel production, and downstream value-added products, serving industries such as automotive, construction, energy, and infrastructure.
Thriveni Pellets Private Limited is engaged in the sale of iron ore pellets in India, while its wholly owned subsidiary, Brahmani River Pellets Limited, focuses on the production and marketing of iron ore pellets.
Summary
The Competition Commission of India has approved two significant transactions: Emirates NBD Bank’s proposed acquisition of a controlling stake in RBL Bank through a mix of open offer, preferential allotment, and merger of Indian operations, and Tata Steel’s purchase of a 50.01% stake in Thriveni Pellets Private Limited. The clearances remove key regulatory barriers for both deals to move forward.
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