The Competition Commission of India (CCI) has approved Kotak Mahindra Bank Ltd’s proposed acquisition of Deutsche Bank Aktiengesellschaft’s retail banking, private banking and wealth management business in India.
The transaction involves the acquisition of the identified business, operated through Deutsche Bank’s branches in India, as a going concern on a slump sale basis.
Deal includes related referral arrangements
The proposed combination also includes referral arrangements between the parties’ affiliates. Under these arrangements, customers of the investment advisory and portfolio management services businesses of Deutsche Investments India Pvt Ltd, an indirect wholly owned subsidiary of Deutsche Bank, may be referred to relevant wholly owned subsidiaries of Kotak Mahindra Bank.
Kotak has presence across banking segments
Kotak Mahindra Bank is a scheduled commercial bank licensed by the Reserve Bank of India. Its equity shares are listed on the BSE and the National Stock Exchange of India.
The bank operates across retail banking, wealth management and institutional banking. Its services include deposit accounts, loans, distribution and referral of third-party investment and insurance products, portfolio management and investment advisory, along with allied services.
Deutsche Bank business covers wealth management
The target business comprises Deutsche Bank’s retail banking, private banking and wealth management operations in India.
Its retail and private banking activities include deposits, lending, investments, insurance and foreign exchange products. The wealth management business primarily serves high-net-worth individuals.
The CCI approval clears the competition regulatory requirement for the proposed combination. The transaction involves the transfer of the specified Indian banking and wealth management business to Kotak Mahindra Bank.