CCI approves acquisition of shares by Dai-ichi Life Holdings Inc. in Union Asset Management Company Private Limited*

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Mar 22, 2018

CCI approves acquisition of shares by Dai-ichi Life Holdings Inc. in Union Asset Management Company Private Limited*

On December 19, 2017, CCI approved an acquisition of 39.62% of shares in Union Asset Management Company Private Limited (‘UAMPCL’) by Dai-ichi Life Holdings Inc. (‘Dai-ichi’).Dai-ichi is a financial services holding company incorporated in Japan, and carries out insurance and non-insurance businesses both in Japan as well as overseas. Dai-ichi has a presence in India by way of Star Union Dai-ichi Life Co. Limited, its joint venture with Bank of India and Union Bank of India. UAMPCL is a wholly-owned subsidiary of Union Bank of India.CCI, without providing any description of the facts relating to non-compete, observed that the non-compete covenant, to the extent it relates to the scope of products or services of the proposed combination, is beyond what is necessary for the implementation of the proposed combination and therefore, is not ancillary to the proposed combination.CCI noted that there were no horizontal or vertical overlaps between Dai-ichi and UAMPCL. CCI therefore opined that the proposed combination was not likely to have an appreciable adverse effect on competition in India and issued its approval.

*C-2017/12/537.

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