CCI approves ₹665-crore primary capital infusion in Aditya Birla

CCI approves ₹665-crore primary capital infusion in Aditya Birla

A ₹665-crore primary capital infusion in Aditya Birla Health Insurance (ABHI) by an entity controlled by the Abu Dhabi Investment Authority (ADIA) has been approved by the Competition Commission of India (CCI), under the green channel route.

Under the green channel process, a combination is deemed to have been approved upon filing the notice in the prescribed format and acknowledgement thereof, subject to the Commission's finding that the combination falls under the 'green channel' scheme. This system would significantly reduce time and cost of transactions.

This is expected to sustain and promote speedy, transparent and accountable review of combination cases, strike a balance between facilitation and enforcement functions and create a culture of compliance and support economic growth.

This investment deal was announced in August 2022 and the transaction valued ABHI at about ₹6,650 crore.

ABHI is a 51:49 joint venture between Aditya Birla Capital Ltd (ABCL) and Momentum Metropolitan Strategic Investments (Pty) Ltd, a wholly-owned subsidiary of South Africa-based Momentum Metropolitan Holdings Ltd.

Upon completion of the transaction, which is subject to receipt of statutory and regulatory approvals, ADIA will own a 9.99 per cent stake in ABHI. ABCL will hold a 45.91 per cent stake and MMH a 44.10 per cent stake, respectively, in ABHI.

The acquirer in the ADIA-ABHI deal is Platinum Owl, a restricted scope (private limited company) incorporated in Abu Dhabi Global Market (ADGM). Platinum Owl is acting in its capacity as a trustee of Platinum Jasmine Trust, a trust which is established under the laws of ADGM. The ADIA is the sole beneficiary and settlor of the Platinum Jubilee Trust. ADIA is a public institution established as an independent investment institution by the government of the Emirate of Abu Dhabi.