Competition Commission clears Hitachi Payment's 26% stake buy in SBI Payment Services

New Delhi: The Competition Commission of India (CCI) on Friday said it has approved the acquisition of 26 percent stake by Hitachi Payment Services in SBI Payment Services. The country’s largest lender State Bank of India (SBI) and payments solution provider Hitachi Payment Services entered into an agreement in October to form a joint venture (JV) for establishing a card acceptance and digital payment platform. The competition watchdog in a tweet on Friday said it “approves the acquisition of 26 percent equity share capital of SBI Payment Services Private Limited by Hitachi Payment Services Private Limited”. SBI will have a majority stake in the proposed JV. [caption id=“attachment_4198517” align=“alignleft” width=“300”] SBI. Representational image. Reuters.[/caption] The JV will provide various payment options to customers and merchants focusing on areas such as the rollout of a nationwide card acceptance infrastructure, quick response code acceptance, Unified Payment Interface, mass transit sector and e-commerce businesses. In a separate tweet, the fair trade regulator said it has given green signal to Ageas Insurance International’s acquisition of 40 percent equity share in Royal Sundaram General Insurance. Royal Sundaram is a provider of general (non-life) insurance services in India and is a subsidiary of Sundaram Finance Group. The CCI “approves the acquisition of 40 percent of the equity share capital of Royal Sundaram General Insurance Co. Limited by Ageas Insurance International N.V,” the regulator said in a tweet. Ageas, a global insurance service provider, currently has only an indirect business presence in India through its investment comprising 26 percent of the equity shareholding in IDBI Federal Life Insurance (IFLI). IFLI is a JV between IDBI Bank, the Federal Bank and Ageas which provides life insurance services in India. Besides, the regulator approved the acquisition of 100 percent of the shares of GrazianoFairfield by the Dana International Luxembourg. Dana International is a wholly-owned indirect subsidiary of Dana Inc. It is a global supplier of driveline, sealing and thermal-management products to manufacturers of light and commercial vehicles. GrazianoFairfield is a wholly-owned subsidiary of OC Oerlikon Corporation and it is engaged in the drive systems business. The ‘drive systems segment’ includes the supply of planetary gearboxes, transmissions, gears, synchronizers, and other components and sub-assemblies to be used in various vehicle and industrial applications. Deals beyond a certain threshold require approval from the CCI.