CCI approves two major acquisitions in sportswear, insurance sectors
New Delhi, June 10
The Competition Commission of India has given green signal for two major acquisitions including a life insurance company and a global sportswear and athletic footwear manufacturer on Wednessday, as per a statement by Competition Commission of India.
According to the release, the regulatory body has approved acquisition of certain shareholding in Shriram Life Insurance Company Limited by Sanlam Emerging Markets (Mauritius) Ltd. Now Ancat Holding GmbH, an indirect wholly owned subsidiary of ANTA, will acquire a 29.06 per cent stake in PUMA SE through a secondary share purchase.
"The proposed combination involves the acquisition by Ancat Holding GmbH (Ancat) (an indirect wholly owned subsidiary of ANTA) of 29.06% of the issued and outstanding share capital of PUMA SE (PUMA) by way of a secondary share purchase," the release said.
As per the release, ANTA Sports, is engaged in the research, design, manufacturing, marketing and sale of sports products, including footwear, apparel and accessories.
CCI has also approved the acquisition of certain shareholding in Shriram Life Insurance Company Limited by Sanlam Emerging Markets (Mauritius) Ltd.
The proposed deal involves Sanlam Emerging Markets (Mauritius) Ltd. (SEMM) acquiring a 2.80 per cent stake in Shriram Life Insurance Company Ltd. (SLIC) through a preferential share issue, according to the release.
"The proposed combination envisages acquisition of 2.80% of the expanded equity capital of Shriram Life Insurance Company Limited (SLIC) through a preferential issue by Sanlam Emerging Markets (Mauritius) Ltd. (SEMM)," the release said.
SEMM is a part of South Africa's Sanlam Group and a strategic partner of Shriram Group.
SLIC is a life insurance company registered with the Insurance Regulatory and Development Authority of India (IRDAI). It is engaged in providing life insurance services, offering a range of life insurance and unit-linked insurance products, and undertaking activities permitted under the Insurance Act, 1938.
— ANI
Reader Comments
Shriram Life Insurance getting a South African partner - that's a vote of confidence in India's insurance sector! Hope this means better products for customers. 📈
But why only 29% in PUMA? ANTA could have gone for majority control. Maybe they want to test waters first. Business strategy makes sense though.
As someone working in finance, these CCI approvals are routine but important. The Shriram-Sanlam deal is small at 2.8% but signals deeper partnership. Smart move.
Yaar, ANTA buying PUMA shares - hope they don't ruin the brand. PUMA is already expensive in India. But more competition might bring prices down? 🤔
Interesting that ANTA is expanding globally. China's sporting goods companies are getting aggressive. But will Indian consumers accept a Chinese-owned PUMA? Could be a marketing challenge.
CCI approvals are always good for transparency. But I wish they would also focus on consumer prices and monopolies in essential goods. Insurance is complicated field. 😅
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