CCI Approves Minority Stake Acquisition in Lenskart by Dove Investments

CCI Approves Minority Stake Acquisition in Lenskart by Dove Investments

The Competition Commission of India (CCI) has approved the minority stake acquisition in Lenskart Solutions by Dove Investments, Defati Investments Holding BV and Infinity Partners.

The proposed combination relates to Dove Investments, Defati Investments Holding BV and Infinity Partners’ minority acquisition of certain equity shareholding of Lenskart.

Dove Investments Limited (Dove), Defati Investments Holding B.V. (Defati) and Infinity Partners (Infinity) are private equity investors which make investments in the ordinary course.

Whereas Lenskart is a private limited company incorporated in India. Lenskart is engaged in: (a) primarily, the business of manufacture of eyewear products, including eyeglasses, sunglasses and eyewear accessories and sale (including by way of retail) of such manufactured products etc.; and (b) secondary business of wholesale trading of eyewear products.

According to the update available on the CCI’s website summary under Regulation 13 (1A) of the Competition Commission of India (Procedure in regard to the transaction of Business relating to Combinations) Regulations, 2011 (as amended) there are no horizontal overlaps; and/ or vertical/ complementary links between the activities of the Parties (and their respective groups/ affiliates) in India.

Further, given that there are no overlaps between the Parties to the proposed transaction, it does not raise any risk of an appreciable adverse effect on competition in any relevant market(s) in India.

Therefore, the Proposed Transaction was notified under the green channel route, in terms of Regulation 5A and Schedule III of the Competition Commission of India (Procedure in regard to the transaction of Business relating to Combinations) Regulations, 2011 (as amended).

“The Acquirers are private equity investors which make investments in the ordinary course. Hence, the Proposed Transaction is solely a financial investment. The present notification form is being filed out of abundant caution,” according to an update on CCI website.

Accordingly, the CCI approved the deal under the green channel route.