The Competition Commission of India (CCI) has finally approved the proposed merger of HDB Financial Services, an HDFC Bank arm, with Atlas Documentary Facilitators, a BPO services provider. According to CCI, this deal will not have any adverse impact on competition in India.
HBL offers specialised BPO (business process outsourcing) services to HDFC Bank that is its only customer, whereas HDFC Bank has also 28.99 per cent stake in Atlas Documentary. In a directive issued on January 2015, CCI told the merger primarily to be a business activity offering in BPO services in the banking, financial services and insurance (BFSI) sector in India. The CCI further said, “There is horizontal overlap between the business activities of the parties regarding BPO services. Considering the fact that the parties provide BPO services only to HDFC Bank and other HDFC group companies, the proposed combination is not likely to change the existing market structure for the provision of BPO services, in India”.
The merger deal between the companies was agreed upon on November 10, 2014. After that Atlas Documentary had appealed to CCI for its approval in December last year.