L&T gets Competition Commission approval to acquire 66.15% stake in Mindtree
CCI has approved acquisition of up to 66.15 per cent of the total equity shareholding of Mindtree Limited, on a fully diluted basis, by Larsen and Toubro Limited
- Apr 6, 2019,
- Updated Apr 6, 2019 3:40 PM IST
Larsen and Toubro (L&T) has secured the approval of Competition Commission of India (CCI) to acquire controlling stake in Mindtree. Reports suggest that the competition watchdog has allowed L&T to acquire up to 66.15 per cent stake in the Bengaluru-based IT services firm. With this, the engineering and construction major has cleared the first step in its hostile takeover of Mindtree.
"CCI approves acquisition of up to 66.15 per cent of the total equity shareholding of Mindtree Limited, on a fully diluted basis, by Larsen and Toubro Limited," the authority posted on its Twitter handle.
Stake acquisition deals beyond a certain limit need CCI's approval to go through. Failing to acquire this approval could lead to the entire deal coming undone. However, this is one of the first regulatory approvals L&T would need to secure. The company will have to approach anti-trust authorities in Germany and the US as Mindtree operates in these markets too, a report by the Business Standard said.
Mindtree panel ropes in Khaitan and Co, ICICI Securities as advisors
Larsen and Toubro (L&T) has secured the approval of Competition Commission of India (CCI) to acquire controlling stake in Mindtree. Reports suggest that the competition watchdog has allowed L&T to acquire up to 66.15 per cent stake in the Bengaluru-based IT services firm. With this, the engineering and construction major has cleared the first step in its hostile takeover of Mindtree.
"CCI approves acquisition of up to 66.15 per cent of the total equity shareholding of Mindtree Limited, on a fully diluted basis, by Larsen and Toubro Limited," the authority posted on its Twitter handle.
Stake acquisition deals beyond a certain limit need CCI's approval to go through. Failing to acquire this approval could lead to the entire deal coming undone. However, this is one of the first regulatory approvals L&T would need to secure. The company will have to approach anti-trust authorities in Germany and the US as Mindtree operates in these markets too, a report by the Business Standard said.
Mindtree panel ropes in Khaitan and Co, ICICI Securities as advisors