CCI Approves Blackstone's 9.99% Stake Acquisition In Federal Bank, Tata Steel's Full Control In Tata BlueScope

New Delhi: Fair trade regulator CCI on Tuesday cleared US-based Blackstone's proposal to acquire 9.99 per cent stake through warrants in private sector lender Federal Bank. Private equity firm Blackstone is acquiring stake through its arm Asia II Topco XIII Pte Ltd.

"The proposed combination envisages acquisition of certain warrants by Asia II Topco XIII Pte Ltd (acquirer), each carrying a right to subscribe to one fully paid-up equity share of Federal Bank Ltd (target)," the regulator said in a release.

Upon full exercise of the warrants, the acquirer will hold a 9.99 per cent of the paid-up share capital of Federal Bank, on a fully diluted basis. Blackstone will have the right to nominate a director on the target's board, as long as it holds at least 5 per cent stake in the bank, according to the release. Federal Bank Ltd is a private sector commercial bank in the country and offers a wide range of products and services, such as deposits, loans, payment services, etc.

In a separate release, the Competition Commission of India (CCI) approved Tata Steel Ltd's proposed acquisition of sole control in Tata BlueScope Steel by purchasing the remaining 50 per cent equity shareholding currently held by BlueScope Steel Asia Holdings Pty Ltd. Tata Steel is engaged in the mining of iron ore, and production of iron ore pellets, sponge iron and crude steel, while Tata BlueScope Steel is a 50:50 joint venture between BlueScope Steel Ltd (BlueScope Australia) and Tata Steel Downstream Products Ltd (TSDPL).

"Commission approves Tata Steel Limited's proposed acquisition of sole control in Tata BlueScope Steel Pvt. Ltd. by purchasing the remaining 50 per cent equity shareholding currently held by BlueScope Steel Asia Holdings Pty Ltd," the competition watchdog said in a post on X. TSDPL operates in the coated steel segment, offering surface coated steel products and associated solutions. The deals beyond a certain threshold require approval from the regulator, which keeps a tab on unfair business practices as well as promotes fair competition in the marketplace.

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