CCI Approves Merger Of Fincare Small Finance Bank With AU Small Finance Bank
The Competition Commission of India (CCI) has granted approval for the merger of Fincare Small Finance Bank with AU Small Finance Bank, according to a disclosure made in an exchange filing on Tuesday. The board of directors of AU Small Finance Bank (AU SFB) and Fincare Small Finance Bank (Fincare SFB) had greenlit an all-stock merger in October of the previous year.
As outlined in the scheme of amalgamation, Fincare Business Services, the promoter of Fincare SFB, will inject Rs 700 crore into Fincare SFB before the merger is finalised. The official communication from CCI, dated 23 January 2024, confirmed the approval of the proposed combination involving the amalgamation of Fincare Small Finance Bank Limited into AU Small Finance Bank.
However, it's important to note that the scheme is still contingent upon receiving approval from the Reserve Bank of India (RBI), underscoring the regulatory steps necessary to complete the merger. The filing to stock exchanges emphasised that the CCI approval marks a significant milestone in the merger process.
As of the close of trading on Tuesday, shares of AU Small Finance Bank were priced at Rs 715.95 apiece on the BSE, reflecting a 4.2 per cent decline. The market's response suggests ongoing investor interest and scrutiny as the merger progresses, awaiting final regulatory clearance from the RBI.
