New Delhi: Competition Commission has given its approval to Reliance Capital Asset Management's proposed acquisition of global giant Goldman Sachs' mutual fund business in India for Rs 243 crore.
The fair trade regulator, which keeps a tab on unfair business practices across sectors, has approved the acquisition as the deal may not have an adverse impact on competition in the country.
Reliance Capital Asset Management (RCAM), in October, had announced the acquisition.
Under the deal, RCAM will acquire all 12 onshore mutual fund schemes of Goldman Sachs Asset Management India with total asset under management of Rs 7,132 crore.
The deal would also make Reliance MF the exclusive fund manager for the government's ambitious Central Public Sector Enterprises (CPSE) Exchange.
In a statement, RCAM said it has received approval from the Competition Commission of India (CCI) for acquiring Goldman Sachs Asset Management India.
Besides, RCAM has also approached Sebi seeking approval for the acquisition. The transaction has been already approved by the boards of the two companies.
Reliance Capital is the financial services arm of Anil Ambani-led business conglomerate Reliance Group and is also present in insurance, brokerage and wealth management among other areas.
Goldman Sachs was given the mandate last year to manage CPSE ETF through which the government has so far raised Rs 4,000 crore by selling part of its stake in ten central PSUs as part of its disinvestment programme.
Goldman Sachs had entered the Indian mutual fund industry in 2011 with acquisition of Benchmark Mutual Fund for Rs 120 crore.
In last few years, a number of global players have exited the Indian mutual fund business.
RCAM manages assets worth over Rs 2,54,517 crore across various funds, schemes and managed accounts. Currently, Reliance Mutual Fund has an AUM of Rs 1.57 lakh crore, while Goldman Sachs Asset Management India had an assets base of Rs 7,132 crore at the end of September quarter.