Jurisdiction - India
India – CCI Clears The Proposed Acquisition Of Stake In PGHL Subsidiaries By Dewan Housing Finance Corp. Ltd.

16 February, 2015

On December 30, 2014, CCI cleared the proposed acquisition of stake of Pramerica Asset Managers Private Limited (‘Target AMC’) and Pramerica Trustees Private Limited (‘Target Trustee’) from PGLH of Delaware Inc. (‘PGLH’) by Dewan Housing Finance Corporation Limited (‘DHFCL’) (collectively referred as ‘Parties’) pursuant to signing of Master Transaction Agreement.


DHFCL is a company incorporated in India and provides home financing services, mortgage finance products and certain asset management services including portfolio management services through its associate company named Arthveda fund Management Private Limited (‘Arthveda’). Target AMC and Target Trustee are wholly owned subsidiaries of PGLH. Target AMC is an investment manager of the Pramerica Mutual Fund (‘Target MF’) and provides asset management services exclusively to Target MF. Additionally, it also provides portfolio management services to corporates and individuals in India. Target Trustee ensures that Target AMC manages the schemes of the Target MF in accordance with extant regulations.


The proposed combination involved the acquisition of 50% of the equity share capital of Target AMC and Target Trustee by the Acquirer from PGLH, pursuant to which the former would have become a 50:50 joint venture between the DHFCL and PGLH. Moreover, the DHFCL would also acquire joint control over Target MF.


CCI observed that there was no horizontal overlap in services pertaining to mutual funds offered by the Parties. Further, since the asset management services (other than portfolio management services) provided by Target AMC were exclusive to the Target MF for mutual fund services, there was no horizontal overlap between such asset management services offered by Arthveda and Target AMC. CCI also observed that Arthveda has insignificant assets under management as compared to the market size of portfolio management services in India. Therefore, observing that there were more than 200 registered portfolio managers In India, CCI noted that there was adequate competitive restrain for such services.


Accordingly, CCI approved the proposed combination on the basis that it was not likely to cause any Adverse Effect in India.



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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