The Indian corporate world has been witnessing a series of big conglomerates in recent years. In sectors ranging from retail to telecom, big corporates have come face to face openly. Now the role of such a collision between Tata and Ambani has been prepared. This is now clear after a proposed merger deal has been approved by the CCI.
These companies are about to merge
Trade regulator Competition Commission of India The proposal for merger of Tata group companies was approved a day earlier. Under the proposed transaction, two Tata Group companies, Tata Cleantech Capital and Tata Capital Financial Services, are to be merged into Tata Capital Ltd.
Companies currently working in this way
At present Tata Cleantech Capital and Tata Capital Financial Services are working as subsidiaries of Tata Capital Limited of the group itself. Both these companies are registered with the Reserve Bank as NBFCs, which do not accept cash. At the same time, Tata Capital is currently registered with RBI as a core investment company. The company is engaged in lending as well as providing a wide range of services in the financial services sector.
Impact of the completion of the proposed transaction
Tata Cleantech Capital in Tata Capital Limited and With the merger of Tata Capital Financial Services, such a financial services company will emerge, whose size will be large. In such a situation, along with the size, the efficiency of the company will also increase. Transactions above a limit require CCI approval. After getting the approval of CCI in this matter, the way for merger has been cleared.
Ambani’s preparations in the financial services sector
On the other hand, the country’s richest person Mukesh Ambani’s company Reliance Industries have also made major preparations for the financial services sector. Reliance Industries has recently demerged its financial services unit and a new company named Jio Financial Services Limited has emerged. Reliance Industries plans to list Jio Financial in the coming days.
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