Magma acquires Religare Finvest auto lease business
Kolkata, Feb 13 : Finance company Magma Fincorp has acquired Religare Finvest's Rs.250-crore auto lease business, it said Wednesday.
Magma, based in Kolkata, completed the acquisition of auto lease portfolio from Religare Finvest Ltd., a subsidiary of Religare Enterprises Ltd., last week, it said in a filing to the Bombay Stock Exchange.
Magma completed the deal after fair trade regulator Competition Commission of India approved the move last month, stating the transaction was unlikely to have adverse impact on competition.
"This acquisition will significantly help our fledgling auto lease business which we recently launched," Magma Fincorp vice chairman and managing director Sanjay Chamria said.
The company finances cars, commercial and utility vehicles, construction equipment and tractors.
With this acquisition, it now has more than 80 large corporations with more than 4,500 individual car customers.
Magma and Religare entered into an 'agreement for sale' in December on the buyout and approached CCI for approval.
Magma also announced it has completed acquisition of 100 percent equity share capital and taken ownership of GE Money Housing Finance.
The announcement of the signing on the definitive agreements by the non-banking financial corporation with GE entities was made Nov 8, 2012.
Magma said GE Money Home Finance acquisition would help it gain access to around 10,000 existing customers.
The acquisition closure of this eight-year-old profitable entity now enables Magma to launch its mortgage business in India and offers a robust platform to scale up the bouquet of products on offer, Chamria said.