CCI approves buying of L&T AMC by HSBC AMC

In December last year, L&T Finance Holdings had announced that it will divest its mutual fund business to HSBC AMC for $425 million. (Representative Image)

The Competition Commission of India (CCI) on March 9 approved acquisition of 100 per cent share capital of L&T Investment Management Limited (L&T AMC) by HSBC Asset Management (India) Private Limited (HSBC AMC).

On Twitter, the CCI stated that the request had been approved.

Commission approves acquisition of 100% share capital of L&T Investment Management Limited (L&T AMC) by HSBC Asset Management (India) Private Limited (HSBC AMC) pic.twitter.com/ZYRodxLkyQ

— CCI (@CCI_India) March 9, 2022

L&T Finance Holdings stated in December 2021 that it will sell its mutual fund business to HSBC AMC for $425 million.

The deal involves the acquisition of 100% of L&T AMC's share capital by HSBC AMC and its nominees from L&T Finance Holdings Limited and its nominees.

Simultaneously, the sponsorship, trusteeship, management, and administration of L&T Mutual Fund schemes handled by L&T AMC would change, with HSBC AMC managing and operating the L&T MF schemes and HSBC Trustee designated as the trustee of L&T MF, according to the notification.

L&T MF will be a part of and considered an important element of HSBC Mutual Fund schemes as a result of the proposed acquisition.

HSBC AMC is the asset management entity for operating the day-to-day functioning of HSBC Mutual Fund schemes (HSBC MF). It is responsible for managing investments of money pooled-in through investments in HSBC MF. HSBC AMC is a wholly-owned indirect subsidiary of HSBC Holdings PLC (HSBC Group) and belongs to the HSBC Group of companies.