Coforge Acquires Majority Stake in Cigniti Technologies: CCI Approval

New Delhi, Jun 25 (PTI) The Competition Commission of India on Tuesday cleared IT firm Coforge's proposal to acquire a majority stake in Cigniti Technologies.

Baring Private Equity Asia-promoted Coforge is an IT and IT-enabled services (ITES) provider listed on BSE and NSE.

"The proposed transaction relates to the acquisition of at least 50.21% and up to 54 per cent shareholding on a fully diluted basis of Cigniti by Coforge pursuant to the execution of share purchase agreements and mandatory open offer in accordance with the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) regulations," CCI said in a release.

Cigniti including its affiliates is engaged in the provision of IT and ITeS and its sub-segments, in India.

"Commission approves acquisition of certain equity shares (majority shareholding) of Cigniti Technologies Ltd by Coforge Ltd," CCI said in a post on X (formerly Twitter).

In May this year, Coforge's said its board of directors had approved the acquisition of a 54 per cent stake in Cigniti Technologies.

Coforge has agreed to enter into a share purchase agreement with the promoters and select public shareholders of Cigniti subject to execution of definitive agreements and completion of certain identified conditions precedent.

In another post on X, CCI said it has granted approval to Mitsui & Co to acquire a stake in Sneha Farms Pvt Ltd.

Tokyo-based Mitsui & Co engaged in various business areas including, mineral and metal resources, infrastructure projects, chemicals, food & retail management, and IT & communication.

"The proposed transaction relates to Mitsui's proposed acquisition of certain equity shares of Sneha Farms by way of a combination of primary subscription and secondary purchase," CCI said.

Sneha Farms covers a wide range of activities from poultry breeding to product distribution, including the maintenance of hatcheries, processing of frozen and chilled chicken, and production of ready-to-cook poultry products, etc.

In March this year, Mitsui & Co announced that it had decided to invest in Sneha Farms, one of India's leading broiler producers.

After the investment, the company will become an associated company of Mitsui.

The deals beyond a certain threshold require approval from the regulator, which keeps a tab on unfair business practices as well as promotes fair competition in the marketplace.