Tata Capital Ltd (TCL) has submitted a proposal to the Competition Commission of India (CCI) seeking approval for the merger of Tata Motors Finance Ltd (TMFL) into TCL. According to a filing made with the antitrust regulator, the proposed transaction involves TMFL merging into TCL, with TCL remaining as the surviving entity. This merger will be executed through a scheme of arrangement that will be submitted to the National Company Law Tribunal (NCLT).
Tata Motors Finance, the vehicle financing arm of Tata Motors, specializes in providing financing options to support the sales of Tata vehicles. In June, the boards of both companies approved the merger. Under the terms of the agreement, TCL will issue equity shares to TMFL's shareholders, leading to Tata Motors holding a 4.7% stake in the merged entity.
This move is part of Tata Motors' broader strategy to exit non-core businesses and refocus on emerging technologies and innovative products.
