Jurisdiction - India
India – CCI Approves Nippon’s Acquisition Of 9% Reliance Capital Asset Management Limited’s Share Capital.

17 March, 2015


On January 20, 201, CCI approved the proposed acquisition of 9% share capital of Reliance Capital Asset Management Limited (‘RCAM’) by Nippon Life Insurance Company (‘Nippon’) from Reliance Capital Limited (‘RCAP’) with an option to acquire up to 49% of the equity shares of RCAM. Nippon already holds 26% shareholding in RCAM.
Nippon, a company incorporated under laws of Japan, is in the business of providing: (a) life insurance; (b) agency and administration services to other insurance companies; (c) asset management related business; and (d) sale and purchase of government bonds. RCAM, subsidiary of RCAP, is engaged in providing asset management services to Reliance Mutual Fund.

In course of its review, CCI observed that both Nippon and RCAM were engaged in providing similar services of asset and portfolio management. However, Nippon did not provide the said services in India except for through RCAM and therefore, there was no horizontal overlap between services provided by Nippon and RCAM.

CCI further noted that the acquisition by Nippon of up to 49% shares in RCAM would not lead to any change in control since Nippon was already in joint control owing to its present 26% stake in RCAM. Therefore, CCI concluded that the proposed combination would neither result in elimination of competitors nor alter the market structure for mutual funds, asset management and portfolio management services.

In light of the above, CCI held that the proposed acquisition was not likely to have any AAEC and approved the transaction.



For further information, please contact:


Zia Mody, AZB & Partners
[email protected]


Abhijit Joshi, AZB & Partners 
[email protected]

Shuva Mandal, AZB & Partners 
[email protected]


Samir Gandhi, AZB & Partners
[email protected]

Percy Billimoria, AZB & Partners 
[email protected]


Aditya Bhat, AZB & Partners 
[email protected]

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