NEW DELHI: The Competitors Fee of India (CCI) on Tuesday accepted the merger proposal of Tata Motors Finance Ltd into Tata Capital Ltd which is a subsidiary of Tata Sons and operates as a non-banking monetary firm – Funding and Credit score Firm (NBFC-ICC).
TCL primarily offers in lending, leasing, factoring, financing and distributing monetary merchandise.
“CCI approves the proposed merger of Tata Motors Finance Ltd with and into Tata Capital Ltd,” the regulator mentioned in a publish on X.
Tata Motors Finance Ltd (TMFL) specializes within the enterprise of offering loans and amenities to finance the acquisition of recent autos manufactured by Tata Motors and its affiliated firms. TMFL additionally offers with the refinancing of present automobile finance loans. It’s a step-down wholly-owned subsidiary of Tata Motors Ltd.
Beforehand in June, Tata Motors, TCL and TMFL’s board accepted a merger of TMFL with TCL by way of an NCLT scheme of association.
As a part of the merger, TCL will situation fairness shares to the shareholders of TMFL, resulting in TML buying a 4.7 p.c stake within the merged entity.
In FY24, TCL and TMFL reported a publish tax revenue of Rs 3,150 crore and Rs 52 crore respectively.
The transaction additionally aligns with TML’s objective of exiting non-core companies and redirecting its capital spends on rising applied sciences and merchandise.
The offers past a sure threshold require approval from CCI, which retains a test on unfair enterprise practices selling honest competitors within the market.
TCL primarily offers in lending, leasing, factoring, financing and distributing monetary merchandise.
“CCI approves the proposed merger of Tata Motors Finance Ltd with and into Tata Capital Ltd,” the regulator mentioned in a publish on X.
Tata Motors Finance Ltd (TMFL) specializes within the enterprise of offering loans and amenities to finance the acquisition of recent autos manufactured by Tata Motors and its affiliated firms. TMFL additionally offers with the refinancing of present automobile finance loans. It’s a step-down wholly-owned subsidiary of Tata Motors Ltd.
Beforehand in June, Tata Motors, TCL and TMFL’s board accepted a merger of TMFL with TCL by way of an NCLT scheme of association.
As a part of the merger, TCL will situation fairness shares to the shareholders of TMFL, resulting in TML buying a 4.7 p.c stake within the merged entity.
In FY24, TCL and TMFL reported a publish tax revenue of Rs 3,150 crore and Rs 52 crore respectively.
The transaction additionally aligns with TML’s objective of exiting non-core companies and redirecting its capital spends on rising applied sciences and merchandise.
The offers past a sure threshold require approval from CCI, which retains a test on unfair enterprise practices selling honest competitors within the market.
