The Competition Commission of India (CCI) will look at the overall market share and size of the combined entity in the case of ING Vysya Bank’s merger with Kotak Mahindra Bank when the proposal comes before the regulator for its approval.
In the biggest merger in the domestic banking sector, Kotak Mahindra Bank has announced the buyout of ING Vysya Bank in an all-stock deal valued at Rs.15,000 crore. “I suppose in due course they (the two banks) will make a filing to the Competition Commission. We will look at it as we look at any other merger proposal,” CCI Chairman Ashok Chawla told reporters here.
“The matter that will engage our attention is that the combined entity, what will be its market share and how big that will be. Based on that a decision will be taken within the parameters of competition law,” he said.
ADVERTISEMENT
Mr. Chawla was responding to a query on what aspects of the deal the Commission would be looking into. He was speaking on the sidelines of a summit here. The CCI keeps a tab on anti-competitive practices at the market place across sectors and works to prevent as well as curb such activities.