New Delhi: The Competition Commission of India (CCI) announced on Thursday that it has given the green light for National Asset Reconstruction Company Ltd (NARCL) and India Debt Resolution Company Ltd (IDRCL) to acquire SREI Infrastructure Finance.

The competition watchdog said that the acquisition has been approved under the green channel route. NARCL is an asset reconstruction company, while IDRCL offers debt management services to NARCL, and both are backed by the Government of India.

As per the CCI notice, the proposed transaction involves the acquisition of a majority of the equity share capital of Srei Infrastructure Finance (SIFL) by NARCL and IDRCL.

NARCL had submitted a resolution plan for the corporate insolvency resolution process (CIRP) of SIFL and its subsidiary, SREI Equipment Finance Ltd (SEFL), which was subsequently approved by the Committee of Creditors (CoC) of SIFL on February 14.

The deal has now been approved by the Competition Commission of India (CCI).

Srei Infrastructure Finance (SIFL) and its subsidiaries offer financing and leasing services for infrastructure equipment procurement, financial advisory services, insurance broking services, and merchant banking services.

"Given that there are no horizontal overlaps or vertical or complementary linkages between the activities of the parties, the proposed transaction is being notified under the green channel," CCI said.

The proposed acquisition of a majority of SIFL's equity share capital by NARCL and IDRCL has been cleared by the Competition Commission of India (CCI) under the green channel route. Transactions that do not pose a significant risk of an adverse impact on competition are deemed to be approved on notification to the anti-trust regulator under this route.