CCI Approves Blackstone's 9.99% Stake Acquisition In Federal Bank, Tata Steel's Full Control In Tata BlueScope
India’s Competition Commission (CCI) has greenlit two major deals this week. One involves Blackstone’s planned investment in Federal Bank, while the other clears Tata Steel’s full takeover of its joint venture, Tata BlueScope Steel. Both transactions will now proceed after regulatory approval.
The CCI first approved Blackstone’s proposal to acquire a 9.99% stake in Federal Bank. The private equity firm will purchase shares through warrants, which, if fully exercised, will give it 9.99% of the bank’s paid-up share capital on a fully diluted basis. As part of the deal, Blackstone will also gain the right to nominate a director to Federal Bank’s board—provided it maintains at least a 5% stake. No specific division of Blackstone has been named in connection with this investment.
In a separate decision, the CCI cleared Tata Steel’s acquisition of full control over Tata BlueScope Steel. The company will buy the remaining 50% equity shareholding in the joint venture, which was previously split evenly between BlueScope Steel and Tata Steel Downstream Products Ltd. Tata BlueScope Steel specialises in coated and painted steel products, while Tata Steel itself operates in iron ore mining, pellet production, sponge iron, and crude steel manufacturing.
With regulatory hurdles now cleared, Blackstone’s investment in Federal Bank and Tata Steel’s full ownership of Tata BlueScope Steel can move forward. The deals will alter ownership structures in both banking and steel sectors, with Blackstone securing board representation and Tata Steel consolidating its position in coated steel production.
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