The Competition Commission of India (CCI) approves acquisition of Citibank, N.A.’s (Citi) and Citicorp Finance (India) Limited’s (Citicorp) undertakings comprising of their consumer banking activities by Axis Bank (Acquirer) under Section 31(1) of the Competition Act, 2002.
The proposed combination involves the proposed slump sale by Citi of an undertaking comprising its consumer banking activities to the Acquirer on a going concern basis and the proposed slump sale by Citicorp of an undertaking comprising its consumer banking activities to the Acquirer on a going concern basis.
The Acquirer is a private sector bank listed on BSE Limited and National Stock Exchange of India Limited. The Acquirer is a licensed scheduled commercial bank and engaged in the provision of retail banking services, commercial and wholesale banking services, and treasury services to customer segments including individuals, micro, small and medium enterprises, agricultural businesses, and corporate businesses.
Citi is a national banking association organised in the USA. Citi’s business offerings are divided into two broad categories–global consumer banking and institutional clients group. Through its global consumer banking division, Citi offers banking and wealth management services to retail customers. In India, Citi is a licensed scheduled commercial bank and offers a full range of consumer and institutional banking products and services.
Citicorp is a public company whose debt securities are listed on a recognised stock exchange, and it is licensed as a systematically important non–deposit taking non-banking financial company (“NBFC”). It offers NBFC business services in India, such as provision of commercial vehicle and construction equipment loans, etc. As part of its consumer business, Citicorp provides personal loans and asset backed finance.
A detailed order of the CCI will follow.