 "Mahindra Engineering Services, Tech Mahindra deal gets CCI nod")
New Delhi: The proposed merger of Mahindra Engineering Services with Tech Mahindra has received green signal from the Competition Commission.
Both entities are part of diversified Mahindra & Mahindra (M&M) group.
In its order, dated January 7, the Commission said the combination “is not likely to have an appreciable adverse effect on competition in India”.
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Competition Commission of India (CCI), which keeps a tab on unfair trade practices, approved the deal on January 7.
Under the deal, all the undertakings and entire business of Mahindra Engineering Services would be transferred/ amalgamated as a going concern into Tech Mahindra.
“As stated in the notice, the purpose of the proposed combination is creation of unified engineering services division within Tech Mahindra,” the order said.
M&M Ltd, directly and indirectly, holds 80.69 per cent stake in Mahindra Engineering Services. It along with other promoters have 36.46 per cent shareholding in Tech Mahindra, according to the Commission.
The boards of the two companies had approved the amalgamation on November 29. Both entities submitted notice to CCI seeking nod on December 18.
PTI