2020 Acquisitions & Mergers by AffairsCloud
2020 Acquisitions & Mergers by AffairsCloud
2020 Acquisitions & Mergers by AffairsCloud
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Flipkart former CEO Sachin Bansal acquires DHFL General Insurance for Rs 100 crore
Former CEO (Chief Executive Officer) and co-founder of Flipkart Sachin Bansal has acquired DHFL
(Dewan Housing Finance Corporation Limited) General Insurance, Mumbai, Maharashtra from Wadhan
Group Capital (WGC) for around Rs.100 crore. WGC is the parent company of crisis-hit DHFL which has
been recently admitted for bankruptcy.The deal has been done via Navi Technologies for Rs.100 crore
formerly known as BAC Acquisitions Private Limited (BACQ) which Sachin Bansal has founded along
with IIT (Indian Institute of Technology) -Delhi batchmate Ankit Agarwal after selling his stake in
Flipkart.
HDFC acquired Apollo Munich Health Insurance for Rs 1,495.81 crore; named as HDFC ERGO
Health Insurance Ltd
HDFC has completed the acquisition of majority stake in Apollo Munich Health Insurance for
Rs.1,495.81 crore, after approvals from the Competition Commission of India (CII), the Reserve Bank of
India (RBI) and the Insurance Regulatory and Development Authority of India (IRDAI). Now, Apollo
Munich Health Insurance company renamed as HDFC ERGO Health Insurance Ltd (HDFC ERGO Health)
and will operate as a subsidiary of HDFC.
Equifax inks pact to acquire 100 % stake in its Indian JV- Equifax credit information services for Rs 370
crore
Equifax Inc, a global information solutions company has signed a definitive agreement to acquire 100 %
stake in its Indian Credit information company, Equifax Credit Information Services Private Ltd (ECIS)
for Rs 370 crore. ECIS has worked as a joint venture (JV) between Equifax and leading Indian financial
institutions (FI) namely State Bank of India (SBI-7.41% stake), Bank of India (BOI-3.50 % stake), Kotak
Mahindra Prime Limited (5.56% stake), Union Bank of India (UBI-4.17% stake) and Bank of
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Baroda(BoB), Sundaram Finance Limited (10% each) since the year 2010. Following this deal, now all
the partners will exit from ECIS.
Food delivery startup Zomato acquires Uber Eats in all-stocks deal for $350 mn
Zomato, an Indian restaurant aggregator and food delivery startup has acquired Uber’s food delivery
business in India, Uber Eats in an all-stocks deal valued at about $350 million (Rs 2,485 crore). As a part
of the deal, Uber will now hold only 9.99 % shares of Zomato & UberEats will discontinue operations
and direct restaurants, delivery partners. Further, all of Uber Eats’ customers will be directed to Zomato
platform.
Adani group’s NBFC Adani Capital acquired Essel Finance’s MSME loan business
Non-Banking Financial Company (NBFC) of the Adani group, Adani Capital Pvt. Ltd has acquired Essel
Finance’s MSME (Ministry of Micro, Small and Medium Enterprises) loan business. The business has a
loan book of Rs 145 crore approximately. As on December 31, 2019, the overall lending book of Adani
capital and the housing finance business was Rs1,100 crore where the contributed Rs150 crore.
Energy major Total to acquire 50% in Adani’s solar portfolio for $510 mn
French energy major Total Gas & Power Business Services SAS (TOTAL) will acquire 50% stake in all
operational renewable energy projects of Adani Green Energy Ltd. (AGEL) for $510 million (Rs 3633
crore) along with other tools in a solar energy joint venture (JV) that will house 2,148 mw now
possessed by the Adani group firm.The remaining 50 % in the JV will be held by AGEL.
Emami Group Signs Binding Pact with Nuvoco Vistas for selling of its 100% stake in Emami
Cement
Emami Group announced the selling of its 100% equity stake in Emami Cement Limited, an Integrated
Cement Manufacturing plant for an amount of Rs. 5500 crores to Nuvoco Vistas Corporation limited,
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part of Nirma Group. The main objective of the deal is to become Debt-Free. Emami Cement has a debt
of Rs. 2,000-2,200 crores and loan against shares of Rs. 1,000 crores. After accruing Emami cements,
Nuvoco will become one of the leading companies in India, especially in Eastern Region. The transaction
is expected to be approved by the Competition Commission of India (CCI) in 3-4 months.
CCI approved joint venture between Mahindra & Mahindra and Ford Motor
The Competition Commission of India (CCI) approved the Joint Venture (JV) between Mahindra &
Mahindra and Ford Motor and transfer of automotive business of Ford India to JV. The proposed
combination envisages the formation of joint venture, called Ardour Automotive Private Limited,
between Mahindra & Mahindra (51%) (M&M) & Ford Motor (49%). In October 2019, Mahindra &
Mahindra and the US-based Ford Motor Company had signed an agreement to create a JV in India
valued at $275 million (Rs 1,925 crore).
Adani Transmission sold 25.1% stake in arm AEML to QIA for Rs 3,220 crore
Adani Transmission has sold 25.1% stake in its arm Adani Electricity Mumbai Limited (AEML) to Qatar
Investment Authority (QIA) for approximately Rs. 3220 crore. The agreements of the transactions were
signed on December 11, 2019. AEML has recently completed an investment grade, USD (United States
Dollar) 1 billion bond insurance.
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CCI approves NTPC to acquire 100% of the issued & paid-up share capital of NEEPCO & 74.5%
stake of THDC India
The Competition commision of India(CCI) has given approval to state owned NTPC under Section
31(1)of the competition act,2002 to acquire 100% of the issued and paid-up share capital of North
Eastern Electric Power Corporation (NEEPCO) & 74.5% stake of Tehri Hydro development Corporation
limited (THDC), the rest 25.5% stake to be held by Uttar Pradesh government. NTPC will spend close to
Rs 15,000 crore to buy NEEPCO & THDC.
ONGC & HPCL acquires 34.56 % of bankers’ stake in Petronet MHB for Rs 371 crore
State-owned Oil and Natural Gas Corporation (ONGC) and its subsidiary Hindustan Petroleum
Corporation Limited (HPCL) acquired 17.28% stake each from 34.56 % of bankers’ stake in Petronet
MHB, the firm that owns a petroleum product pipeline in Mangalore, Karnataka for about Rs 371 crore.
A consortium of 8 public sector banks held 34.56 % while HPCL and its subsidiary ONGC (Oil and
Natural Gas Corporation) presently hold 32.72% stake each in PMHBL. The acquisition is expected to be
completed by March 31, 2020.
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The CCI has gave its nod to the acquisition of about 35 % equity stake in the paid-up equity
share capital of Teesta Urja Ltd (an Indian Non-Government Company) by Greenko Mauritius, a
wholly-owned subsidiary of Mauritius-based Greenko Energy Holdings. The approval was given
under Section 31(1) of the Competition Act, 2002.
The CCI has gave its nod to the acquisition of additional equity shares in Hero FinCorp Limited
by Otter Limited (an investment company registered in Mauritius) & Link Investment Trust(a
private trust registered in India).
The CCI has approved to establish Mindspace Business Parks REIT (also known as Mindspace
REIT),a real estate investment trust, by K Raheja Corp Group.
Bharti Airtel took 10% stake in fitness start-up Spectacom Global ltd
Bharti Airtel Limited (also known as Airtel), an Indian global telecommunications services company,
has acquired a 10 % equity stake in fitness start-up Spectacom Global Pvt Ltd, under its ‘Airtel Startup
Accelerator Program’, which focuses on supporting the growth of early-stage Indian startups. However,
the company did not reveal how much the deal is worth. With this acquisition, Spectacom becomes the
2nd firm to join the Airtel Start-up Accelerator Program after Bengaluru-based Vahan.
NTPC acquires Govt’s stake in THDC, NEEPCO for a total of Rs 11,500 Crore
NTPC (formerly known as National Thermal Power Corporation Limited), India’s largest energy
conglomerate, has inked a share purchase agreement (SPAs) worth of Rs 11,500 crore with the central
government. Under the deal NTPC acquired the latter’s 74.496 % equity stake in THDC India Ltd
(THDCIL) for Rs 7,500 crore & its 100% equity in North-Eastern Electric Power Corporation Limited
(NEEPCO) for Rs 4,000 crore respectively.
Chennai Port acquires centre’s 67% stake in Kamarajar Port for 2,383 crores
The Chennai Port Trust (ChPT) has acquired 67% stake held by the Central government in Kamarajar
Port Ltd (KPL) for an amount of Rs 2,383 crore. However, both the ports will function as separate
entities representing KPL as corporate firm & ChPT as trust, while deriving benefits in terms of
investments and operations.
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CCI approves Joint Venture between Adani Green Energy Limited and Total S.A
The Competition Commission of India (CCI) has approved the formation of Joint Venture (JV) between
Adani Green Energy Limited and French oil and gas company Total S.A. for solar power generation in
India. The proposed combination predicts that Adani Green Energy will transfer certain of its
subsidiaries to a newly incorporated company (JV) & then the total S.A. will acquire 50% of JV’s equity
share capital, either directly or indirectly.
Trishikhar ventures acquisition of 18.95 % stake in Religare health insurance gets CCI nod
The Commission of India (CCI), a non-departmental public body responsible for investigating mergers,
has approved the acquisition of 18.951 % equity stake in Religare Health Insurance Company Limited
(RHICL) by Trishikhar Ventures LLP under the green channel route. The approval was done under the
sub-section (2) of Section 6 of the Competition Act, 2002 (Act) read with regulation 5A of the
Competition Commission of India, Regulations, 2011.
CCI approves Hitachi’s acquisition of 80.1% stake in ABB’s power grid business
The Competition Commission of India (CCI) approved the proposed acquisition of 80.1% share capital
of ABB Management Holding AG by Japanese firm Hitachi Limited from Swiss company ABB Ltd, where
ABB Management will hold the entire power grid business of ABB. The acquisition values its grid
business at $11 billion (Rs 78,763 crore).
CCI approves 100% acquisition of GMR Kamalanga Energy Limited by JSW Energy Limited
The Competition Commission of India (CCI) has approved 100% acquisition of Grandhi Mallikarjuna
Rao (GMR) Kamalanga Energy Limited (Ltd) by Jindal South West (JSW) Energy Ltd under section 31(1)
of the Competition Act, 2002.
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China’s central bank increases its stake to 1% in HDFC; SAMA also bought 0.7% stake
China’s central bank named People’s Bank of China (PBOC) increased its stake in Housing Development
Finance Corp Limited (HDFC) to 1.01% from 0.8% on behalf of the Chinese sovereign wealth fund
named SAFE. Similarly, Saudi Arabian Monetary Authority (SAMA), the central bank of Saudi Arabia has
also picked up a 0.7% stake in HDFC on behalf of Saudi sovereign wealth fund.
CCI approves Emerald Sage Investment Ltd’s acquisition of 9.93% stake in Apollo Tyres Ltd
The Competition Commission of India (CCI) approved Emerald Sage Investment Limited (Emerald)’s-
‘acquirer’ proposed acquisition of 9.93% stake in Apollo Tyres Limited (Apollo)- ‘target’, where the
acquirer’s compulsory convertible preferred stock to be 10.80 crore, which is approximately 9.93% of
the post-issued paid-up share capital of the target company.
Novelis Inc. of Hindalco acquired US’s Aleris for $2.8 billion deal
Hindalco Industries Ltd. Of Aditya Birla group has acquired Aleris Corporation through its wholly
owned subsidiary US based Novelis Inc. for an enterprise value of $2.8 billion (Rs 21,295 crores).
Hindalco is now one of the world’s largest aluminium makers.
TVS motor acquires 122-year-old UK-based firm Norton motorcycles for Rs 153 cr
TVS Motor Company Ltd, an Indian multinational motorcycle company, has acquired the 122-year-old
iconic British company Norton Motorcycle (UK) Ltd for Rs 153 crore (£16 million). TVS has also tied up
with BMW Motorrad i.e. BMW G 310R and BMW G 310 GS are being manufactured at the TVS plant
itself. Along with this, TVS also has its own motorcycle-based platform TVS Apache RR 310.
Eros International & Hollywood’s STX Entertainment to merge all share- 1st of its kind
Indian movie producer and distributor Eros International (holding company of the Lulla’s-promoted
Eros Group) announced an 1st of its kind all-share merger with 6-year-old, privately held Hollywood’s
STX Entertainment to create an equally-held global entertainment company with a value of USD 1
billion.
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Volvo & Daimler Truck set up Joint Venture to develop fuel cells for heavy vehicles
Swedish luxury vehicles brand Volvo Group and German automotive corporation Daimler Truck AG
have collaborated to set up a joint venture (JV) with equal partnership for the development and
production of fuel cell systems for heavy vehicles. As a part of JV, Daimler Truck will put all its current
fuel cell activities, and Volvo Group will buy a 50% stake in the venture for around 600 million euros
($652 million).
Facebook buys 9.99% stake in Reliance Jio, largest FDI in India’s tech sector
The US tech giant Facebook has bought a 9.99% stake in the telecom unit of Reliance Industries Ltd
(RIL), Reliance Jio for $5.7 billion, or Rs 43,574 crore. This is the largest investment for a minority stake
by a technology company anywhere in the world and the largest Foreign Direct Investment (FDI) in the
technology sector in India.
ICICI Prudential Mutual Fund Bharat-22 ETF picks shares worth Rs.59 crore in NALCO
ICICI Prudential Mutual Fund Bharat-22 ETF picked up share of value Rs.59 Crore in the Navaratna
Group ‘A’ CPSE - National Aluminium Company (NALCO – Headquarters at Bhubaneswar) through the
open market transaction. The National Stock Exchange (NSE) said that more than 1.71 crore shares
were bought at an average of Rs.34.43 apiece.
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Axis Bank to buy 29% stake in Max Life Insurance for Rs 1,600 crore
Axis Bank Ltd would acquire an additional 29% stake in Max Life Insurance Company from Max
Financial Services Limited (MFS). The deal will increase Axis Bank ‘s stake in Max Life to 30%. However,
the bank didn’t reveal the amount it is paying for the stake. But the bigger deal can be estimated at Rs
1,600 crore (about $209.43 million) which will be paid in two stages.
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