Kotak Mahindra-PineBridge mutual funds deal gets CCI approval

NEW DELHI: Kotak Mahindra Mutual Fund's proposed acquisition of schemes run by PineBridge Mutual Fund has received nod from the Competition Commission.

Under the proposed combination, Kotak Mutual Fund would acquire control of the schemes of PineBridge Mutual Fund by way of change in trusteeship, management and administration.

Giving its green signal, CCI said the deal is not likely to have appreciable adverse effect on competition in the country.

Most mutual funds in the country, including certain larger players, are offering similar schemes as that provided by the concerned entities, according to the Competition Commission of India (CCI).

Therefore, from demand side perspective, an investor may switch from one mutual fund to another offering similar type of schemes, it added.

The notice seeking approval was given by Kotak Mahindra Asset Management Company Ltd and Kotak Mahindra Trustee Company Ltd.

Kotak AMC manages the mutual fund schemes offered by Kotak MF, a trust with Kotak Mahindra Bank Ltd as the sponsor.

PBI Asset Management Company is into managing the schemes of PBI Mutual Fund -- a trust sponsored by PineBridge Investments Japan Co.

"The parties' combined market share in the overall market of mutual funds in India would be 3.67 per cent which is significantly lower than the other large players in the mutual fund industry," the fair trade regulator said in an order dated November 20 and released today.

As per CCI, at the end of June, Indian mutual fund industry's total average assets under management stood at Rs 9,93,232.40 crore.

The incremental increase in the market share of Kotak MF in the overall market of mutual fund due to the proposed combination would be 0.06 per cent, which is insignificant, the watchdog said.