Competition Commission of India (CCI) has approved the merger of global IT service provider iGATE Corp’s two group firms, iGATE Computer Systems (ICSL) (formerly Patni Computer) and iGATE Global Solutions (IGSL).
CCI said in an order released on Friday that proposed combination “is not likely to have an appreciable adverse effect on competition in India” as it was a restructuring exercise within a group.
Both ICSL and IGSL are engaged in the business of export of IT and IT-enabled services in India and abroad.
CCI observed in the order, dated November 20, that there was no vertical arrangements between IGSL and ICSL, and the control over activities carried out by the two before and after the proposed amalgamation would remain with iGATE.
“...the proposed combination is a restructuring between the enterprises belonging to the same group, the proposed combination is not likely to give rise to any adverse competition concern in India,” CCI said.
As per the order, iGATE Corporation and its wholly-owned subsidiary iGATE Inc hold 24.79 per cent and 75.21 per cent stake in IGSL respectively. On the other hand, ICSL was acquired by iGATE Corporation through its subsidiaries IGSL and Pan Asia iGATE Solutions. The companies had acquired 61.29 per cent stake in ICSL.
At present, Pan Asia iGATE Solutions and IGSL hold 97.47 per cent shares of ICSL, CCI said.