CCI cleared Reliance Capital-Goldman Sachs deal

The Competition Commission of India (CCI) on 5 January 2016 gave its approval to Reliance Capital Asset Management's proposed acquisition of Goldman Sachs' mutual fund business in India for 243 crore rupees.

CCI approved the acquisition as the deal may not have an adverse impact on competition in the country.

After CCI’s nod, Reliance Capital Asset Management (RCAM) will seek the final nod of the Securities and Exchange Board of India (SEBI) to complete the takeover.

About Reliance Capital-Goldman Sachs deal

• RCAM had announced the acquisition in October 2015.

• Under the deal, the company will acquire all 12 onshore mutual fund schemes of Goldman Sachs Asset Management India with total asset under management of 7132 crore rupees.

• The deal will also make Reliance MF the exclusive fund manager for the government's ambitious Central Public Sector Enterprises (CPSE) Exchange.

About Goldman Sachs

• The Goldman Sachs Group, Inc. is an American multinational investment banking firm.

• It engages in global investment banking, securities, investment management and other financial services primarily with institutional clients.

• It was founded in 1869.

• The firm provides mergers and acquisitions advice, underwriting services, asset management, and prime brokerage to its clients.

• The firm also engages in market making and private equity deals, and is a primary dealer in the United States Treasury security market.

• It had entered the Indian mutual fund industry in 2011 with acquisition of Benchmark Mutual Fund for 120 crore rupees.

Now get latest Current Affairs on mobile, Download # 1  Current Affairs App