Combination Registration No. C-2011/07/01. Case: In Re: Reliance Industries Limited Vs. Competition Commision of India

Case Number:Combination Registration No. C-2011/07/01
Party Name:In Re: Reliance Industries Limited Vs
Issue:Competition Act, 2002 - Sections 5, 6(2), 20(4) and 31(1); Companies Act, 1956; Insurance Regulatory Development Authority (Insurance Brokers) Regulations, 2002 - Regulation 9(4)
Judgement Date:July 26, 2011
Court:Competition Commision of India
 
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Order:

Order under Section 31(1) of the Act

  1. The Competition Commission of India (hereinafter referred to as "Commission"), on July 8, 2011, received a notice from Reliance Industries Limited (hereinafter referred to as "RIL") and Reliance Industrial Infrastructure Limited (hereinafter referred to as "RIIL") (jointly referred to as "Acquirers") relating to a proposed combination under Sub-section (2) of Section 6 of the Competition Act, 2002 (hereinafter referred to as "Act"). The Commission considered the matter in its meeting held on July 26, 2011.

  2. The proposed combination relates to the acquisition, by Acquirers, of seventy four per cent of the share capital each in the joint venture companies i.e. Bharti AXA Life Insurance Company Limited (hereinafter referred to as "BAL") and Bharti AXA General Insurance Company Limited (hereinafter referred to as "BAG") (hereinafter jointly referred to as "Acquired Enterprise(s)) from Bharti Ventures Limited (hereinafter referred to as "BVL"), Bharti Enterprises Limited (hereinafter referred to as "BEL") and Bharti Overseas Private Limited (hereinafter referred to as "BOPL")(collectively referred to as "Bharti Entities"). Therefore, the proposed combination falls under Clause (a) of Section 5 of the Act.

  3. BAL and BAG are the joint venture companies between Bharti Entities and AXA SA, headquartered in Paris, France (hereinafter referred to as "AXA"). The Acquirers have stated in the notice that the Acquirers and AXA shall have equal representation on the board and each of the two Acquired Enterprise(s) will be jointly controlled.

  4. The acquisition by the Acquirers of the entire seventy four per cent share capital held by Bharti Entities in each of the Acquired Enterprise(s) is pursuant to the binding share purchase terms dated June 10, 2011 (hereinafter referred to as "binding document") executed between AXA, Bharti Entities and RIL which is stated to have triggered the filing requirement under Sub-section (2) of Section 6 of the Act.

  5. RIL, incorporated in the year 1973 under the Companies Act, 1956 has its shares listed at both National Stock Exchange of India Limited and Bombay Stock Exchange Limited and is present in multitude of sectors i.e. exploration and production of oil and gas, petroleum refining and marketing, petrochemicals, textiles, retail, wireless broadband etc.

  6. RIIL, incorporated in the year 1988 under the Companies Act, 1956 has its shares listed at both National Stock...

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