New Delhi, Sep 2 The Competition Commission of India (CCI) on Tuesday approved the Sumitomo Mitsui Banking Corporation's acquisition of certain share capital and voting rights of Yes Bank.
"The proposed combination relates to the acquisition of share capital and voting rights of YES Bank by Sumitomo Mitsui Banking Corporation (SMBC)," the CCI said.
Earlier last month, private sector lender Yes Bank informed that the SMBC has received the Reserve Bank of India's (RBI) nod to acquire 24.99 per cent stake in the bank.
This approval, which was granted by the RBI on August 22, will remain valid for a year, the private sector lender said in an exchange filing.
However, the RBI had further clarified that with the stake acquisition, the SMBC would not be treated as a promoter of the bank.
On May 9 this year, the stake purchase was first disclosed with SMBC acquiring 20 per cent in Yes Bank through a secondary transaction — including 13.19 per cent from State Bank of India and a combined 6.81 per cent from seven other banks: Axis Bank, Federal Bank, Bandhan Bank, ICICI Bank, HDFC Bank, IDFC First Bank, and Kotak Mahindra Bank.
SMBC, a Japan-based commercial bank, is a wholly-owned subsidiary and a core operating entity of Sumitomo Mitsui Financial Group. Yes Bank, a listed company, is a private sector bank engaged in providing a range of banking and financial services.
In a separate development, the CCI has also approved the proposed combination involving the acquisition of up to 100 per cent shareholding by Manipal Hospitals Private Limited in Sahyadri Hospitals Private Limited.
Manipal Hospitals Private Limited (Acquirer) is a wholly owned subsidiary of Manipal Health Enterprises Private Limited (MHEPL), while Sahyadri Hospitals Private Limited(Target) operates a multi-speciality hospital chain in Maharashtra, offering comprehensive tertiary and quaternary healthcare services.
The proposed combination involves the acquisition of up to 100 per cent shareholding by the acquirer in the target in multiple tranches.
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