New Delhi: Competition watchdog CCI has approved the proposed acquisition of additional 32.39 percent shares of Multi Screen Media (MSM India) by Sony Group.
"Considering the facts on record and the details provided in the notice, the Commission is of the opinion that the proposed combination is not likely to have an appreciable adverse effect on competition in India and therefore, the Commission hereby approves the proposed combination," said the CCI order.
The acquirers -- SPE Mauritius Holdings (SPE Holdings) and SPE Mauritius Investments (SPE Investments) - that belong to the Sony Group, already hold 62 percent in MSM India.
"The proposed combination relates to the acquisition of 20.28 percent and 12.11 percent of the equity shares in MSM India by the acquirers from Grandway and Atlas, respectively," CCI said in its order.
Grandway and Atlas collectively hold 32.39 percent of the equity shares in MSM India and the remaining 5.61 percent equity shares are held by Foreign Institutional Investors (FIIs).
"Upon consummation of the proposed combination, the shareholding of the acquirers in MSM India would increase from 62 percent to 94.39 percent," the order said.
"...The proposed combination is not likely to give rise to any adverse competition concern in India," CCI said in its order.
In a statement issued in June by a wholly-owned subsidiary of SPE, it was said that Sony Group would acquire an additional 32 percent stake in MSM India for USD 271 million (about Rs 1,510 crore).
First Published: Sunday, August 19, 2012, 11:02