INSUBCONTINENT EXCLUSIVE:
In FY24, TCL and TMFL reported a profit after tax of Rs 3,150 crore and Rs 52 crore respectively
| Photo: PTI2 min read Last Updated : Sep 10 2024 | 7:41 PM IST
The Competition Commission of India (CCI) on Tuesday cleared the proposed
merger of Tata Motors Finance Ltd into Tata Capital Ltd.
Tata Capital Ltd (TCL) is a subsidiary of Tata Sons and is operating as a
non-banking financial company Investment and Credit Company (NBFC-ICC).
TCL is engaged primarily in the business of lending, leasing,
factoring, financing and distributing financial products.
"CCI approves the proposed merger of Tata Motors Finance Ltd with and into Tata
Capital Ltd," the regulator said in a post on X.
Tata Motors Finance Ltd (TMFL) operates as an NBFC-ICC and is engaged in the business of
refinances existing vehicle finance loans
It is a step-down wholly-owned subsidiary of Tata Motors Ltd.
In June this year, Tata Motors, TCL and TMFL's board approved a merger of
TMFL with TCL through an NCLT scheme of arrangement.
As consideration for the merger, TCL will issue its equity shares to the shareholders
of TMFL resulting in TML effectively holding a 4.7 per cent stake in the merged entity.
In FY24, TCL and TMFL reported a profit after tax
of Rs 3,150 crore and Rs 52 crore respectively.
The transaction is also in-line with TML's stated objective of exiting non-core businesses
and focus its capital spends on emerging technologies and products.
The deals beyond a certain threshold require approval from the
regulator, which keeps a tab on unfair business practices as well as promotes fair competition in the marketplace.(Only the headline and
picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated
feed.)First Published: Sep 10 2024 | 7:41 PMIST
