CCI Approves Proposed Acquisition By Julius Baer Group Limited.

27 May, 2015

On March 5, 2015, CCI approved the proposed transaction involving the acquisition of the wealth management business, wealth management lending business and trust services related to wealth management of DSP Merrill Lynch Limited (‘DSPML’) by Julius Baer Group Limited (‘JB’). The notice was filed pursuant to a local purchase agreement executed between JB and DSPML.

 

CCI observed that JB, a leading Swiss private banking group with a global presence, did not currently have any operations in India, although one of JB’s subsidiaries, the Bank Julius Baer & Co. Limited, is a registered Foreign Institutional Investor with the SEBI and held investments in Indian companies. However, CCI observed that the business operations of these companies had no overlap with the wealth management business of DSPML. CCI observed that DSPML was a registered stock broker, merchant banker, depository participant, investment advisor and portfolio manager.

 

In course of its assessment, CCI observed that DSPML and JB were not engaged in providing similar or identical or substitutable services in the Indian market either directly or indirectly. Further given that JB had no presence in the Indian market, there was no vertical relationship between DSPML and JB.

 

Accordingly, CCI held that the proposed acquisition is not likely to have any AAEC in India and approved the transaction under Section 31(1) of the Competition Act.