The Competition Commission of India (CCI) has approved the proposed merger of Tata Motors Finance Limited (TMFL) with and into Tata Capital Limited (TCL). This merger, structured as a scheme of arrangement, will see TCL as the surviving entity, subject to approval by the National Company Law Tribunal.
Tata Capital Limited, a subsidiary of Tata Sons Private Limited, operates as a non-banking financial company – Investment and Credit Company (NBFC-ICC). TCL is primarily engaged in lending, leasing, factoring, financing, and distributing financial products.
Tata Motors Finance Limited, also an NBFC-ICC, focuses on providing loans and financial facilities for purchasing new and pre-owned vehicles, particularly those manufactured by Tata Motors Limited and its group companies. TMFL also extends loans and advances to transporters, dealers, and vendors of Tata Motors Limited, including working capital facilities, invoice discounting, and factoring services.
The merger aims to streamline operations within the Tata Group’s financial services, consolidating TMFL’s vehicle financing expertise with TCL’s broader financial services portfolio. This strategic move is expected to enhance operational efficiency and leverage synergies between the two entities.
The approval by the CCI marks a significant step forward in the merger process, which will now proceed to the National Company Law Tribunal for final clearance. Upon completion, the merger will position Tata Capital Limited to expand its reach and capabilities in the financial services sector, aligning with Tata Sons’ broader strategic objectives.
