New Delhi: The Competition Commission of India (CCI) has approved the proposal of L&T Finance to take over the mutual fund business of Fidelity in India.

"...the Commission is of the opinion that the proposed combination is not likely to have an appreciable adverse effect on competition in India and therefore, the Commission hereby approves the proposed combination," the competition watchdog said in an order approving the acquisition.

In March, L&T Finance had announced that it will take over the mutual fund business of Fidelity of its India operations. But, it did not disclose the financial details.

L&T Finance is a part of engineering conglomerate L&T Group and Fidelity Mutual Fund is part of the US-based Fidelity Worldwide Investment.

The total size of the market for asset management services in the country was about Rs 6,64,791 crore, in terms of average assets under management, during January-March, as per the data from Association of Mutual Funds in India (AMFI).

"There is ample choice available to the customers in the selection of mutual funds. Further, the customers can switch from one mutual fund to another without any significant funds business in India is fragmented with existence of many players and significant entry barrier," CCI said.

Fidelity AMC, incorporated in 2004, manages the 15th largest mutual fund in India with a market share of 1.3 per cent and an average asset under management (AUM) for the quarter ended December 2011 of Rs 8,688.06 crore.


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