The Competition Comission of India on Tuesday announced that it had approved the merger of Tata Motor Finance with Tata Capital. The merger, announced in June, will see Tata Capital issue its equity shares to the shareholders of Tata Motor Finance resulting in Tata Motors effectively holding a 4.7% stake in the merged entity.
“CCI approves the proposed merger of Tata Motors Finance Limited with and into Tata Capital Limited,” the industry body posted on X.
In a filing to the exchanges on June 4, Tata Motors said that the Board of Directors of Tata Motors, Tata Capital and Tata Motors Finance have approved a merger of Tata Motor Finance with Tata Capital through an NCLT scheme of arrangement.
“The transaction is in-line with Tata Motors’ stated objective of exiting non-core businesses and focus its capital spends on emerging technologies and products,” the company said.
In FY 24, Tata Capital and Tata Motors Finance reported a profit after tax of Rs 3,150 crore and Rs 52 crore respectively.
