CCI seeks approval for merger of Tata Motors Finance with Tata Capital

Tata Capital Ltd (TCL) has approached the Competition Commission of India (CCI) seeking approval for its acquisition of Tata Motors Finance Ltd (TMFL).

In a document filed with the antitrust authority last week, the company said: “The proposed transaction involves the merger of TMFL with TCL, and TCL will be the acquiring entity under a scheme of arrangement to be filed with the National Court of Company Law.”

Tata Motors Finance is the vehicle financing arm of Tata Motors, offering financing primarily to support sales of Tata vehicles.

In June, the boards of both entities approved the merger proposal. Under the terms of the merger, TCL will issue its equity shares to TMFL shareholders, resulting in Tata Motors effectively owning a 4.7% stake in the combined entity. The deal is in line with Tata Motors’ plan to exit non-core businesses and focus on new technologies and products.