On September 23, 2019, the CCI approved Varenna Holdings Limited’s (‘Varenna’) acquisition of approximately 40% of the shareholding in Dixcy Textiles Private Limited (‘DTPL’).[1] Varenna already held 60% of the shareholding in DTPL and sought to purchase the remaining shares from other existing shareholders.

Varenna is a Cyprus-based special purpose vehicle that operates as an investment holding company for Advent International Corporation. DTPL is in the business of manufacturing hosiery products including men’s inner wear, women’s inner wear, kid’s inner wear, and casual wear such as shorts and sweatshirts.

The CCI noted the absence of horizontal and vertical overlaps between the business activities of DTPL and Varenna. The CCI also noted that at the time of filing, Varenna had entered into an agreement to purchase 100% of the shareholding in another entity, which would result in some horizontal overlaps. In any case, the CCI was of the view that the combined market share of the parties despite the overlaps would be insignificant, owing to the presence of a large number of competitors. In light of the same, the CCI opined that the combination was not likely to have any AAEC and accordingly, approved the combination.

[1] Combination Registration No. C-2019/09/685.