CCI approves Blackstone and Mphasis deal

The Dollar Business Bureau

The Competition Commission of India (CCI) on Monday cleared the multi-billion dollar deal of Blackstone to acquire more than 50% stake in Mphasis from Hewlett Packard (HP) enterprise. The regulator declared on its website that it has cleared the deal and that Marble II Pte Ltd., a part of Blackstone Group, would complete this acquisition.

In April, Blackstone had announced that it will acquire around 50% stake of Hewlett-Packard Enterprise (HPE) in Mphasis for over Rs.7,071 crore, marking it the largest IT deal for a US-based firm in India. 

HP owns 60.5% stake in Mphasis. Blackstone may pay a purchase price of Rs.430 per share to Hewlett-Packard Enterprise. This transaction would generate a mandatory open offer for a purchase of other 26% shares in the company. The acquiring entity has released a public announcement to the stock exchanges.

Based on the open offer subscription, the purchase price consideration will vary between Rs.5,466 crore and Rs.7,071 crore or around $825 million to $1.1 billion. 

HPE and Blackstone have decided on a master services agreement (MSA) which HPE proposes to sign with Mphasis.

Blackstone is a global alternative asset manager and provider of financial advisory services while Mphasis is a Bangalore-based IT solutions provider, offering applications, business process outsourcing and infrastructure services globally through a combination of technology knowhow, domain and process expertise.