CCI approves acquisition of the stake in Simpolo Vitrified Private Limited by India Business Excellence Fund IV, India SME Investments Fund – I, Motilal Oswal Finvest Limited and others

The Competition Commission of India (CCI) approves acquisition of the stake in Simpolo Vitrified Private Limited by India Business Excellence Fund IV, India SME Investments Fund – I, Motilal Oswal Finvest Limited and others.

The proposed combination involves the acquisition of shareholding in Simpolo Vitrified Private Limited (SVPL/ Target) by India Business Excellence Fund IV (IBEF IV), India SME Investments Fund – I (India SME), Motilal Oswal Finvest Limited (MOFPL), partners of Simpolo Ceramics (SC / Simpolo Ceramics) (collectively, SC Partners) and the shareholders of Nexion International Private Limited (Nexion), viz., Aghara & Sons (Aghara) and Ceramiche Speranza SPA (Ceramiche SPA). The proposed combination also contemplates transfer of the business of SC and Nexion into SVPL.

SVPL is in the business of designing, manufacturing and sale of vitrified tiles. It is also engaged in the trading of various kinds of tiles, sanitaryware and bath fittings, faucets and allied products. Its subsidiary, Nexion Surfaces is a newly incorporated wholly owned subsidiary of SVPL and does not have any business operations as on date.

IBEV IV is a category II Alternative Investment Fund (AIF) registered with the Securities and Exchange Board of India (SEBI) and primarily invests in equity and equity-linked instruments and/or debt and/or mezzanine or other instruments of Indian or India related companies. It is a sector-agnostic fund, providing growth capital to mid-sized companies. MOFPL is a non-banking financial company registered with the Reserve Bank of India. It is primarily engaged in lending and related activities. MOFPL and IBEF IV both belong to the Motital group. MOFPL is a wholly owned subsidiary of Motilal Oswal Financial Services Limited (MOFSL). MO Alternate Investment Advisors Pvt. Ltd., which is another wholly owned subsidiary of MOFSL, is the investment manager of IBEF.

India SME is a private equity fund under the SEBI AIF CAT II License in India.

SC Partners form part of the core promoter group of the Target. Seven (out of eleven) of the SC Partners also hold 68% interest in Aghara. As such, these seven SC Partners (i.e., the Aghara Partners) presently have an interest in each of SVPL, Nexion (through Aghara) and SC.

Aghara is an investment firm, with no business operations in India except its 50% shareholding in Nexion. Ceramiche SPA does not have any business operations in India, and only has 50% shareholding in Nexion. Ceramiche SPA is the parent entity of Consorzio Digit Tile S.C.R.L, incorporated in Italy. Consorzio Digit Tile S.C.R.L. is into wholesale trading of tiles, wood, construction materials and sanitary equipments in Italy.

SC is engaged in the business of designing, manufacturing, supplying and distributing, through SVPL, all types of sanitaryware and bath fittings, faucets and allied products to builders, architects and homeowners, both in India and overseas through a network of distributors, dealers and retailers.

Nexion is in the business of designing, manufacturing, and sale of premium vitrified tiles to builders, architects and home owners both in India and overseas through a network of distributors, dealers and retailers. It is also engaged in trading of vitrified tiles manufactured by third parties to customers.

Detailed order of the CCI will follow.

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