The Competition Commission of India (CCI) has been consulted by Tata Capital Ltd (TCL) over its bid to acquire Tata Motors Finance Ltd (TMFL).Â
“The proposed transaction involves the merger of TMFL with and into TCL, with TCL being the surviving entity through a scheme of arrangement to be filed with the National Company Law Tribunal,” the business stated in a filing it made with the antitrust agency last week.
Providing Loans
The Tata Motors Finance division specializes in providing loans to boost the sales of Tata automobiles. Both businesses’ boards had given their approval to the merger proposal in June. Tata Motors will effectively own a 4.7% part in the combined company after TCL issues its equity shares to TMFL shareholders in accordance with the terms of the deal.
The deal is in line with Tata Motors’ strategy to divest non-core operations and concentrate more on cutting-edge goods and technologies.
