The Competition Commission of India (CCI) has given its approval under the ‘green channel’ route to the acquisition of Essel Mutual Fund by Sachin Bansal-owned entity BAC Acquisitions Pvt. Ltd. This is the first approval under the ‘green channel’, as announced by CCI on Monday via Twitter…
@CCI_India received the first green channel combination pertaining to the acquisition of the Essel Mutual Fund by an entity forming a part of the Sachin Bansal Group”— CCI (@CCI_India) October 7, 2019
About BAC Acquisitions
BAC Acquisitions is a private company owned by one of the two principal founders and former Executive Chairman of Flipkart, Sachin Bansal. BAC Acquisitions aims to develop business automation and computerisation platforms.
Sachin Bansal, along with his friend and former investment banker, Ankit Agarwal, registered the BAC Acquisitions on December 10, last year. Back in February, Sachin Bansal has invested $7 million in the venture.
About the green channel concept
According to the Economic Times, The green channel concept – recommended by the high-level panel that reviewed competition law in August – allow for an automatic system for speedy approval for certain categories of merger and acquisitions.
Under the framework, green channel approvals can be availed in combinations where there are no horizontal overlaps, no existing or potential vertical relationships and no complementary business activities between the combining parties, or their respective group entities, or involving any entity in which any of the combining partied hold shares or have control.
Merger and acquisitions (M&As) or combinations beyond a certain threshold are required to have mandatory approval from the fair trade regulator.