New Delhi : Competition Commission has approved global private equity major Warburg Pincus-invested Highdell’s proposed 24 per cent stake purchase in Kalyan Jewellers.
Giving its green signal, the fair trade watchdog said the deal is not likely to have an “appreciable adverse effect on competition in India”.
The shareholders of Mauritius-based Highdell Investment Ltd are private equity funds managed by Warburg Pincus.
The deal relates to Highdell acquiring up to 24 per cent stake in Kalyan Jewellers on a fully diluted basis. As per Shareholders’ Agreement, Highdell would also “acquire certain affirmative and veto rights on certain key business decisions,” according to the Competition Commission of India (CCI).
“Given the absence of horizontal product overlap and vertical relationship, the proposed combination is not likely to have any effect on competitive conditions in India,” CCI said in an order dated October 13 and released today.
Kerala based Kalyan Jewellers India Pvt Ltd is into manufacture and sale of gems and jewellery having its branches all over South India and Gulf.
A Shareholders’ Agreement (SHA) and a Subscription and Share Purchase Agreement (SSPA) between Highdell, Kalyan Jewellers and promoters and other shareholders of Kalyan were executed on August 28.
Highdell, an investment holding company, had submitted notice seeking approval from CCI on September 10.
“As stated in the notice, neither Highdell, nor Warburg Pincus, directly or indirectly through investments in other portfolio companies, have any current investment in the market for manufacture and sale of gems and jewellery in India and there are no horizontal or vertical overlaps,” the order said.