Caisse de depot et placement du Quebec
Case brief
What is this about?
The Competition Commission of India approved a proposed combination where Caisse de dépôt et placement du Québec subscribed to compulsorily convertible debentures in Piramal Enterprises Limited, finding no appreciable adverse effect on competition despite horizontal overlaps in financial services.
What did the court decide?
Proposed combination approved under Section 31(1) of the Act with directions on confidentiality and revocation.
What the court decided
A compact analysis
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
COMPETITION COMMISSION OF INDIA
(Combination Registration No. C-2019/11/704)
10th December, 2019
Notice under Section 6 (2) of the Competition Act, 2002 filed by Caisse de dépôt et placement du Québec
CORAM:
Mr. Ashok Kumar Gupta Chairperson Ms. Sangeeta Verma Member
Mr. Bhagwant Singh Bishnoi Member
Order under Section 31(1) of the Competition Act, 2002
- On 11th November, 2019, Competition Commission of India ( Commission ) received a notice under Section 6(2) of the Competition Act, 2002 ( Act ), filed by Caisse de dépôt et placement du Québec ( CDPQ / Acquirer ). The notice has been filed pursuant to the execution of Securities Subscription Agreement dated 25th October, 2019 ( SSA ) between CDPQ and Piramal Enterprises Limited ( PEL / Target ). (Hereinafter, CDPQ and PEL are together referred to as “ Parties ”).
- The proposed combination relates to subscription of compulsorily convertible debentures ( CCDs ), issued and allotted by way of preferential issue, of the Target by the Acquirer. Upon conversion of these CCDs, the equity shareholding of the Acquirer in the Target will increase from existing 3.68% to 8.99% ( Proposed Combination ).
Issues for consideration
3 issues framed by the court
Whether the proposed acquisition of shares via compulsory convertible debentures by CDPQ in Piramal Enterprises Limited is likely to have an appreciable adverse effect on competition.
Whether the combination falls under the definition of horizontal or vertical overlap requiring merger regulation.
Whether the proposed combination should be approved under Section 31(1) of the Competition Act, 2002.
Parties & counsel
- petitioner
Caisse de dépôt et placement du Québec
Coram
Ashok Kumar Gupta
Sangeeta Verma
Bhagwant Singh Bishnoi
Case details
As recorded by the court registry
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