The Competition Commission assessed the proposed acquisition of HDFC ERGO shares by HDFC Limited. The Commission found the parties' combined market shares to be negligible and other competitive constraints to be present. Consequently, it approved the combination.
Proposed Combination approved under Section 31(1) of the Act.
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-2023/05/1033)
20th June 2023
Notice under Section 6(2) of the Competition Act, 2002 filed by Housing Development Finance Corporation Limited
CORAM:
Ms. Ravneet Kaur Chairperson
Ms. Sangeeta Verma Member
Mr. Bhagwant Singh Bishnoi Member
Order under Section 31(1) of the Competition Act, 2002
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Combination Registration No. C-2023/05/1033
basis from ERGO International AG (the Proposed Transaction ) such that HDFC Limited (after the Proposed Transaction) and the surviving amalgamated entity i.e. HDFC Bank (after the effective date of the Proposed Amalgamation1 ) will hold 50.50% of the shareholding of HDFC ERGO in compliance with Indian banking laws post the Proposed Amalgamation coming into effect ( Proposed Combination ). (Hereinafter, HDFC Limited and HDFC ERGO are collectively referred to as the Parties ).
Description of the Parties
1 It is mentioned in the notice that the Commission vide order dated 12th August 2022 in Combination Registration No. C-2022/06/942 has approved the proposed combination comprising of: (a) amalgamation of HDFC Investments Limited ( HDFC Investments ) and HDFC Holdings Limited ( HDFC Holdings ) into and with HDFC Limited, such that HDFC Limited would be the surviving entity post this step; and (b) amalgamation of the amalgamated HDFC Limited into HDFC Bank Limited ( HDFC Bank ), such that HDFC Bank will be the surviving entity post this step (collectively, the Proposed Amalgamation ).
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Combination Registration No. C-2023/05/1033
Identification of overlaps and relevant markets
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Combination Registration No. C-2023/05/1033
Assessment of the Proposed Combination
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Combination Registration No. C-2023/05/1033
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2 issues framed by the court
Whether the proposed acquisition of equity shares in HDFC ERGO by HDFC Limited is likely to cause an appreciable adverse effect on competition in India.
Whether the combined market share of the parties in the horizontal and vertical relevant markets indicates competition concerns.
4 provisions across 1 enactments
Housing Development Finance Corporation Limited
ERGO International AG
HDFC ERGO General Insurance Company Limited
Ravneet Kaur
Sangeeta Verma
Bhagwant Singh Bishnoi
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
