Kotak Mahindra Bank gets CCI approval for Deutsche Bank India business deal

The CCI approval for Kotak Mahindra Bank was secured on Tuesday for the acquisition of Deutsche Bank's retail banking, private banking and wealth management businesses operated through its branches in India, covering approximately ₹29,000 crore in loans. The CCI said the transaction would be carried out as a going-concern slump sale.

CCI approval covers Deutsche Bank's branch-run India businesses

The Competition Commission of India (CCI) has cleared Kotak Mahindra Bank’s acquisition of Deutsche Bank’s retail, private banking and wealth management business conducted out of Deutsche Bank’s branches in India by Deutsche Bank Aktiengesellschaft.

Kotak Mahindra Bank and Deutsche Bank today announced that the following businesses are part of the transaction: approximately ₹29,000 crore of loans and approximately ₹16,000 crore of deposits.

Wealth management businesses of the entities transferred to the ARFi Industries Ltd. group have approximately Rs. 10,500 crore of assets under management.

The CCI would examine the proposed acquisition by Kotak Mahindra Bank to be carried out on a going concern basis through a slump sale, which would also involve certain affiliate arrangements.

The CCI said the referral arrangement relates to Deutsche Investments India's investment advisory and portfolio-management services businesses. Customers of those businesses would be referred to relevant wholly owned subsidiaries of Kotak Mahindra Bank. Deutsche Investments India is an indirect wholly owned subsidiary of Deutsche Bank.

June agreement preceded the CCI approval

Kotak Mahindra Bank and Deutsche Bank AG entered into a definitive agreement for the transaction, Kotak Mahindra Bank and Deutsche Bank AG, through its India branch, announced in June this year.

The agreement applies to Deutsche Bank’s retail banking, affluent private banking and wealth management business in India, both parties said.