On November 14, 2019, CCI approved the merger of the asset management business of BNP Paribas and Bank of Baroda which was carried through the following steps[1]:

i.       A merger between Baroda Asset Management India Limited (‘BOB AMC’) and BNP Paribas Asset Management India Private Limited (‘BNP AMC’) such that BNP AMC would remain as the surviving entity.

ii.      A merger between BNP Paribas India Private Limited (‘BNP TC’) and Baroda Trustee India Limited (‘BOB TC’) such that BOB TC would remain as the surviving entity.

On the issue of horizontal overlaps, CCI noted that there existed a horizontal overlap between BNP Paribas and Bank of Baroda in the provision of mutual fund business and portfolio management services business. CCI however observed that the combined and incremental market share in both these markets was not significant enough to raise any competition concerns.

On the issue of vertical overlaps, CCI noted that there existed a vertical relationship between the mutual fund business of BOB and the mutual fund distribution activities carried out by BNP Paribas (through its subsidiary Sharekhan Limited). CCI however observed that the market shares of Sharekhan Limited and BOB in each of their markets is not significant. Further, the overall mutual funds segment is characterized by the presence of various players who would continue to impose competition constraints.

[1]  Combination Registration No. C-2019/10/698.