Fair trade regulator Competition Commission has cleared private equity major Baring's proposed acquisition of CMS, saying the deal is not likely to have an adverse impact on competition in the country.
The deal would be done through Sion Investment Holdings Pte Ltd, a Singapore-registered investment vehicle that is part of Baring.
CMS and its subsidiaries are into the business of ATM services such as deployment of cash dispensers and cash deposit machines.
In India, CMS has three subsidiaries -- Securitrans India, CMS Securitas and CMS Marshall.
Giving its green signal, the regulator said the proposed transaction is "not likely to have an appreciable adverse effect on competition" in the country.
Competition Commission of India (CCI) keeps a tab on unfair business practices across sectors.
Under the deal, Sion would acquire 100 per cent share capital of CMS by implementing two share purchase agreements - one between Blackstone FP Capital Partners (Mauritius) V Ltd, Sion and CMS; another between certain individuals and CMS Computers Ltd, Sion and CMS.
Sion would purchase 56.15 per cent stake in CMS from Blackstone and another 38.69 per cent shareholding from certain individuals and CMS Computers Ltd.
The remaining 5.16 per cent stake -- held by an employee through the employee stock ownership plan -- would be acquired by Sion.
"There are no horizontal overlaps between the parties to the proposed combination... there is also no vertical relationship between any of the portfolio companies and CMS and/or any of its subsidiaries," the order, dated April 24 and made public today, said.