Deal approvals: CCI clears Blackstone’s Federal Bank entry; Tata Steel gets nod for BlueScope buyout

The Competition Commission of India on Tuesday approved US-based private equity firm Blackstone’s proposal to acquire up to 9.99 per cent stake in Federal Bank through warrants, clearing the way for the global investor’s entry into the private sector lender.In a release, the fair trade regulator said the proposed transaction involves Asia II Topco XIII Pte Ltd, an arm of Blackstone, acquiring warrants that carry the right to subscribe to equity shares of Federal Bank, PTI reported.“The proposed combination envisages acquisition of certain warrants by Asia II Topco XIII Pte Ltd (acquirer), each carrying a right to subscribe to one fully paid-up equity share of Federal Bank Ltd (target),” the regulator said.Upon full exercise of the warrants, the acquirer will hold 9.99 per cent of the paid-up share capital of Federal Bank on a fully diluted basis, according to the CCI. Blackstone will also have the right to nominate a director on the bank’s board as long as it holds at least a 5 per cent stake.Federal Bank is a private sector commercial lender offering a range of banking products and services, including deposits, loans and payment solutions.In a separate approval, the CCI also cleared Tata Steel Ltd’s proposal to acquire sole control of Tata BlueScope Steel by purchasing the remaining 50 per cent equity stake held by BlueScope Steel Asia Holdings Pty Ltd.“Commission approves Tata Steel Limited’s proposed acquisition of sole control in Tata BlueScope Steel Pvt. Ltd. by purchasing the remaining 50 per cent equity shareholding currently held by BlueScope Steel Asia Holdings Pty Ltd,” the watchdog said in a post on X.Tata BlueScope Steel is currently a 50:50 joint venture between BlueScope Steel Ltd of Australia and Tata Steel Downstream Products Ltd. Tata Steel is engaged in iron ore mining and steel production, while Tata Steel Downstream Products operates in the coated steel segment, offering surface-coated steel products and related solutions.Transactions crossing specified thresholds require clearance from the competition regulator, which is mandated to prevent unfair business practices and ensure fair competition in the market.