CCI Approves Everstone Capital’s Acquisition In Aon.

27 May, 2015

On February 10, 2015, CCI approved the acquisition of shares and assets by Everstone Capital Partners II LLC (‘Everstone’) from Aon Corporation (‘Aon’) by way of a share and asset sale and purchase agreement dated December 4, 2014.

 

The notification was a part of a global transaction involving Everstone’s acquisition of Aon’s Asia Pacific based payroll business carried on through its indirect subsidiaries in India, China, Philippines and Singapore. In India, the transaction involved Everstone acquiring the payroll business of Aon Services India Private Limited (‘Aon India’), an indirect subsidiary of Aon, as a going concern, through Payfront Technologies India Private Limited, a newly incorporated indirect subsidiary of Everstone.

 

Everstone is a Mauritius based private equity investment company which is professionally managed by Everstone Capital Management. Aon, is a company incorporated under the laws of the state of Delaware, USA, and is a leading global provider of risk management services, insurance and reinsurance brokerage, and human resources solutions and outsourcing services.

 

CCI noted that one of the portfolio companies held by Everstone, i.e. Aparajitha Corporate Services Limited (‘Aparajitha’), was engaged in the business of providing payroll services. However given the nature and scale of business carried on by Aparajitha, the horizontal overlaps between Everstone and Aon in India, were insignificant. CCI also noted that the proposed vertical arrangements between Everstone and Aon, involving referrals and sub-contracting arrangement were unlikely to give rise to any AAEC in India. Accordingly, CCI approved the transaction by way of its order under Section 31(1) of the Competition Act.