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India – CCI Approves Kotak’s Acquisition Of Pine Bridge Mutual Fund.

13 January, 2015

 


On November 20, 2014 CCI approved proposed combination relating to acquisition by Kotak Mahindra Asset Management Company Limited (‘Kotak AMC’) and Kotak Mahindra Trustee Company Limited (‘Kotak Trustee’) of Pine Bridge Mutual Fund, from PineBridge Investments Asset Management Company (India) Private Limited (‘PBIAMC’) and PineBridge Investments Trustee Company (India) Private Limited (‘PBI Trustee’), (referred to as the ‘Proposed Transaction’).

 
CCI observed that Kotak AMC is engaged in management and administration of mutual fund schemes offered by Kotak MF. It further observed that PBI AMC is engaged in the management and administration of schemes of PBI MF.

 
CCI observed that mutual funds schemes are categorised as (a) growth /equity oriented scheme; (b)income/debt oriented scheme; (c) balanced fund scheme; (d) money market/liquid fund scheme; (d) gilt funds scheme; (e) index funds scheme; (f) fund of funds scheme. CCI further observed the mutual fund schemes offered by Kotak MF can be broadly categorised into (a) equity schemes;(b) debt schemes; (c) gilt schemes; (d) exchange traded funds; (d) balanced schemes; and (e) fund of fund schemes. Accordingly, the schemes of PBI MF were categorised into (a) equity schemes; (b) debt schemes; and (c) fund of fund schemes. CCI also stated that most mutual funds in India, including certain larger players, are offering similar schemes as the Parties. Accordingly that the combined market share of the parties to the Proposed Transaction is relatively low.

 
Observing that the Proposed Transaction was unlikely to result in any AAEC in the market for mutual funds, CCI approved the Proposed Transaction.

 

AZB

 

For further information, please contact:

 

Zia Mody, AZB & Partners
zia.mody@azbpartners.com

 

Abhijit Joshi, AZB & Partners 
abhijit.joshi@azbpartners.com

Shuva Mandal, AZB & Partners 
shuva.mandal@azbpartners.com

 

Samir Gandhi, AZB & Partners
samir.gandhi@azbpartners.com

Percy Billimoria, AZB & Partners 
percy.billimoria@azbpartners.com

 

Aditya Bhat, AZB & Partners 
aditya.bhat@azbpartners.com

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