The Competition Commission of India has approved a proposed deal involving the acquisition of shares in Shriram Asset Management Company (SAMC) by Sanlam Emerging Market (Mauritius) Limited (SEMM) and Shriram Credit Company Limited (SCCL).

As part of the agreement, SEMM will acquire 23 per cent of SAMC’s expanded voting share capital through a preferential allotment. Additionally, SEMM, along with SCCL, will launch an open offer to acquire up to 26 per cent more shares from the public, in accordance with SEBI’s takeover regulations.

SEMM, a Mauritius-based company and part of South Africa’s Sanlam Group, already holds a 40.7 per cent stake in Shriram Capital, the parent company of SAMC. SCCL, a subsidiary of Shriram Investment Holdings and part of the Shriram Group, currently acts as the promoter and sponsor of SAMC.

SAMC, which operates under the Shriram Group, is registered with SEBI as an asset management company. While it has received regulatory approval to offer portfolio management services, it has not yet begun operations in that area.

A detailed order from the Competition Commission is expected to follow.

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