Kotak Mahindra, ING shares rise as merger deal gets CCI nod

MUMBAI: Shares of Kotak Mahindra and ING Vysya today ended with gains in an otherwise weak stock market, as their proposed Rs 15,000-crore merger deal got the Competition Commission's approval.

Kotak Mahindra shares ended the day 1.21 per cent higher at Rs 1,313.15 on the BSE. During the day, it climbed 3.66 per cent to Rs 1,345.

Shares of ING Vysya settled with a gain of 0.95 per cent at Rs 922.90. In intra-day trade, it rose by 3.36 per cent to Rs 945.

The proposed Rs 15,000-crore merger deal between Kotak Mahindra and ING Vysya has got the Competition Commission's approval.

According to the fair trade regulator, the merger, which would create the country's fourth-largest private sector lender, is "not likely to have an appreciable adverse effect on competition in India".

In an order dated February 12 but released on Friday, the Competition Commission of India ( CCI) said that share of both entities in various relevant markets is "insignificant".

As per the order, the merger scheme provides that for every 1,000 shares held by the shareholders of ING Vysya, 725 shares of Kotak will be allotted to the shareholders of ING Vysya.

Kotak Mahindra had announced the buyout of ING Vysya Bank in an all-stock deal in November last year, following which it had approached CCI for approval in December.

Meanwhile, in the broader market the BSE benchmark Sensex ended at 28,975.11, down 256.30 points.