CCI Approves Merger of Tata Motors Finance and Tata Capital

The Competition Commission of India (CCI) has approved the merger of Tata Motors Finance Ltd (TMFL) into Tata Capital Ltd (TCL). TMFL, primarily providing vehicle financing, and TCL, a broad-spectrum financial services company, will consolidate to streamline operations. Post-merger, Tata Motors Ltd will hold a 4.7% stake in the merged entity.

The Competition Commission of India (CCI) has given its approval for the planned merger of Tata Motors Finance Ltd (TMFL) with Tata Capital Ltd (TCL), according to a social media post by the regulator.

TCL, an Investment and Credit Company (NBFC-ICC) under the Tata Sons umbrella, provides various financial services including lending, leasing, and distributing financial products. TMFL, a wholly-owned subsidiary of Tata Motors Ltd, primarily finances the purchase of Tata Motors' new vehicles and also offers refinancing options for existing vehicle loans.

As part of the merger agreement, TCL will issue equity shares to TMFL's shareholders, making Tata Motors Ltd a 4.7% stakeholder in the new entity. The merger aligns with Tata Motors' strategy to exit non-core businesses and focus on emerging technologies and products. The CCI's approval ensures the transaction adheres to regulations aimed at maintaining fair competition.

(With inputs from agencies.)