Tata Capital Ltd (TCL) has sought the Competition Commission of India’s (CCI) approval for its proposal to absorb Tata Motors Finance Ltd (TMFL).
In a filing with the antitrust regulator last week, the company said: “The proposed transaction involves the merger of TMFL with and into TCL, with TCL being the surviving entity through a scheme of arrangement to be filed with the National Company Law Tribunal.”
Tata Motors Finance is the vehicle financing arm of Tata Motors, primarily offering financing to support sales of Tata vehicles.
In June, the boards of both entities had approved the merger proposal. As per the merger terms, TCL will issue its equity shares to TMFL shareholders, resulting in Tata Motors effectively holding a 4.7% stake in the merged entity. The transaction aligns with Tata Motors’ plan to exit non-core businesses and sharpen focus on emerging technologies and products.
