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CBI Clears Air India-Indian Airlines Merger: Shiv Sena’s Raut Demands BJP Apology to Ex-PM Singh

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The Central Bureau of Investigation (CBI) has concluded its investigation into alleged irregularities surrounding the Air India-Indian Airlines merger, filing a closure report due to lack of evidence of any wrongdoing. In response, Shiv Sena (UBT) leader Sanjay Raut has called on the Bharatiya Janata Party (BJP) to apologize to former Prime Minister Manmohan Singh for previous accusations. During the UPA era, the formation of the National Aviation Corporation of India Limited (NACIL) through the merger of Air India and Indian Airlines drew scrutiny. However, the CBI’s closure report suggests that no evidence of dishonest decisions or conspiracy has been found. Raut highlighted the BJP’s previous criticism of alleged corruption during Manmohan Singh’s tenure and insisted on an apology from the party in light of the CBI’s findings. The leasing of aircraft under NACIL, overseen by then-Union Civil Aviation Minister Praful Patel, has been a subject of investigation. However, the CBI found no evidence to support allegations of wrongdoing. Addressing reported disagreements among partners of the Maha Vikas Aghadi (MVA) coalition ahead of the upcoming Lok Sabha polls, Raut emphasized unity among allies. He announced an upcoming press conference featuring leaders from the MVA, including Uddhav Thackeray, Sharad Pawar, and Congress representatives, to address any concerns. Additionally, Raut revealed Thackeray’s participation in the Opposition INDIA bloc rally in New Delhi on March 31, aimed at safeguarding the country’s interests and democracy. This rally was organized following the arrest of Delhi Chief Minister Arvind Kejriwal by the Enforcement Directorate.

CBI Clears Air India-Indian Airlines Merger: Shiv Sena’s Raut Demands BJP Apology to Ex-PM Singh Read More »

Tech Mahindra Plans Merger of Two US-Based Subsidiaries to Enhance Operational Efficiency

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Tech Mahindra, a prominent IT services and consulting company, has announced its intention to merge two of its wholly-owned subsidiaries, Born Group and Tech Mahindra (Americas). The move aims to streamline business operations, optimize costs, and mitigate compliance risks. The merger proposal, subject to regulatory approvals in the respective countries of incorporation, sets April 1, 2024, as the appointed date. This strategic decision, approved by both entities on March 22, 2024, signifies a consolidation of resources and capabilities within the Tech Mahindra ecosystem. Born Group, specializing in brand strategy and visual design for digital and physical products in the US market, and Tech Mahindra (Americas), offering computer consulting and IT management services, will align their operations to capitalize on synergies and enhance overall efficiency. Tech Mahindra (Americas) serves as a significant subsidiary of Tech Mahindra Ltd, with Born operating as a wholly-owned subsidiary of TMA. The consolidated turnover for the financial year ending March 31, 2023, stands at USD 55.08 million for Born and USD 1,201.37 million for TMA, according to regulatory filings. The merger is anticipated to result in operational synergies, cost optimization, and reduced compliance risks, leveraging the complementary nature of Born and TMA’s businesses. Notably, there will be no cash consideration or issuance of new shares as part of the merger process. The investment of TMA in Born will be nullified upon the merger’s completion. Despite the merger, the shareholding pattern of Tech Mahindra will remain unaffected, ensuring continuity in ownership structure.  

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Airbus Abandons Potential Acquisition of Atos Data Division, Leaving Atos in Limbo

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Atos, an IT services company facing financial challenges, has hit another roadblock in its attempt to sell off part of its business to address its debt issues. Airbus, a potential acquirer of Atos’s big data and security business, has decided to walk away from the deal after completing its due diligence investigation. The failure of this deal has led Atos to once again postpone the release of its audited financial statement for 2023 as it reassesses its options. This setback adds to the company’s existing challenges, as it has already faced difficulties in finalizing a deal with another potential buyer, EP Equity Investment, for its infrastructure management business. Although Airbus might have seemed like an unlikely savior, given its expertise in cybersecurity and data management through its own operations, the potential synergies between the two companies did not materialize into a successful acquisition. Despite Atos’s efforts to explore strategic alternatives, including the possibility of another buyer, the company finds itself in a state of uncertainty. Atos now faces the task of bringing together its legacy and modern business segments while navigating its financial difficulties and evaluating its strategic options. The company’s CEO, Paul Saleh, has not ruled out the possibility of seeking another buyer for its assets. However, the uncertainty surrounding Atos’s future, compounded by concerns over national security implications and its contracts with the French Ministry of Defense, poses challenges for the company’s clients and its ability to attract new business. As Atos continues to grapple with its financial woes and search for a path forward, the outcome of its strategic evaluations will be closely watched by stakeholders, including CIOs in industries such as healthcare, manufacturing, and defense that rely on Atos’s services.

Airbus Abandons Potential Acquisition of Atos Data Division, Leaving Atos in Limbo Read More »

Vistara Issues Ultimatum to Pilots Over New Pay Structure Amid Merger with Air India

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Vistara, in the midst of its merger with Air India, has given an ultimatum to its pilots regarding a new pay structure, sparking concerns among pilots, particularly First Officers, who anticipate significant pay cuts. The ultimatum, issued just hours before the deadline to accept the new pay terms, warns of potential exclusion from the integrated airline for those who fail to comply. The new pay structure, under scrutiny by pilots, offers a minimum guaranteed flying time of 40 hours for all pilots, down from the current 70 hours. Consequently, First Officers are expected to endure a pay cut of nearly 57%. They argue that under the new terms, they would need to fly up to 76 hours to earn what they previously earned at 70 hours, while Captains and Senior Captains face less drastic reductions, needing to fly 52-55 hours and 55-60 hours, respectively, to maintain their previous salary levels. Legal experts weigh in, suggesting that changes to employment conditions post-hiring may not be legally enforceable, potentially rendering any bonds or agreements signed by pilots, particularly in relation to training loans owed to the airline, invalid. Moreover, concerns loom over the transition of some pilots to widebody aircraft from the current narrowbody Airbus A320, potentially delaying their career progression to Captain roles and impacting their earnings. With plans to halve flight operations by June and cease independent operations by October as part of the integration process with Air India, Vistara aims to conclude the merger by mid-2025. Conditional approval from regulatory bodies in Singapore and India has been secured, with further approvals pending. The ultimatum has intensified tensions between Vistara and its pilots, highlighting the complexities and challenges associated with mergers and restructuring within the aviation industry.  

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LTIMindtree Faces Risks Amid Citibank Restructuring and Leadership Exodus

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LTIMindtree, the sixth largest Indian IT firm, finds itself navigating turbulent waters following Citibank’s restructuring and a wave of high-level executive departures post-merger. Analysts warn that these developments pose significant risks to the company’s wallet share compared to its peers in the IT services industry. Citibank, a key client for LTIMindtree alongside other major IT firms, is undergoing corporate restructuring to streamline operations and reduce costs. This restructuring may lead Citibank to optimize its IT services budget, potentially impacting its engagements with Indian IT service providers. Jefferies analysts highlight the heightened risk of wallet share loss for LTIMindtree due to management churn and Citibank’s restructuring initiatives. The departure of LTIMindtree’s CFO, Vinit Teredesai, underscores ongoing integration challenges stemming from the merger. Despite assertions of client satisfaction and seamless delivery, the company continues to grapple with integration-related issues, evident from the string of senior-level exits in the past year. In response to these challenges, LTIMindtree’s board appointed Vipul Chandra as the new CFO, signaling efforts to stabilize leadership amid the transition. However, the company has witnessed approximately 18 top-level exits, including key CXO positions such as CTO, CBO, and CMO, raising concerns about leadership continuity and integration effectiveness. Amidst leadership uncertainties, the company is reportedly grooming internal candidates for the CEO role, including Sudhir Chaturvedi, President and Executive Board Member, and Nachiket Deshpande, COO. However, the elevated churn at the senior management level underscores persistent integration hurdles, posing long-term concerns for the company’s stability and growth trajectory. Despite these challenges, LTIMindtree remains focused on strategic initiatives to address attrition, enhance diversity, and nurture internal talent. The company aims to achieve a 12% reduction in attrition by 2030, along with a 30% increase in diversity. Additionally, it seeks to fulfill 50% of new role requirements through internal talent development, signaling a commitment to long-term sustainability amidst industry headwinds.  

LTIMindtree Faces Risks Amid Citibank Restructuring and Leadership Exodus Read More »

Byju’s-Aakash Merger Application Withdrawn Amid Governance Dispute

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The proposed merger between Byju’s and Aakash Educational Services Ltd (AESL) has hit a stumbling block as both companies withdrew their merger petition during a hearing at the National Company Law Tribunal (NCLT) on Tuesday. This move follows a series of governance disputes and challenges encountered since the acquisition. Initially structured as a cash-and-stock deal, Byju’s acquired AESL for $940 million, with the intention of integrating the brick-and-mortar test prep company into its digital education ecosystem. However, disagreements over governance issues and share-swap arrangements have led to a standstill in the merger process. The Chaudhry family, founders of AESL, along with private equity firm Blackstone, were slated to receive shares of Think & Learn, the parent company of Byju’s, as part of the acquisition deal. However, complications arose when the Chaudhry family refused to proceed with the share swap, citing governance concerns. Byju’s responded by issuing a legal notice to the founders of AESL, alleging resistance to complete the share swap. The Aakash saga took a new turn when Ranjan Pai, chairman of Manipal Education and Medical Group, emerged as the largest shareholder in Aakash Institute, holding a 39 percent stake. This shift occurred after the conversion of a $300 million investment made by Pai in 2023 into equity. Previously, Pai had invested $200 million to assist Byju’s in clearing its debts and interests to Davidson Kempner, further entangling the financial complexities surrounding the merger. Meanwhile, Byju’s is grappling with its own challenges, including a cash crunch and legal disputes. A group of investors has filed a case alleging ‘oppression and mismanagement’ against the company’s management. The NCLT’s directive to segregate proceeds from a rights issue underscores the legal complexities facing Byju’s, with investors seeking to halt the $200 million rights issue amid concerns over share dilution. The withdrawal of the merger petition underscores the complexities and challenges inherent in consolidating two prominent players in the edtech sector. Governance disputes, financial intricacies, and legal hurdles continue to shape the trajectory of Byju’s and Aakash Institute, highlighting the evolving landscape of India’s education technology industry.  

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Centre Raises Threshold for Merger and Acquisition Vetting by Competition Commission of India

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The Corporate Affairs Ministry has announced revisions to the thresholds for mergers and acquisitions (M&As), altering the criteria for exemption from Competition Commission of India (CCI) approval. Under the new regulations, companies are not obligated to notify the CCI if the target entity’s assets, including subsidiaries, amount to less than Rs 450 crore, with a turnover below Rs 1,250 crore. This represents an increase from the previous thresholds of Rs 350 crore for assets and Rs 1,000 crore for turnover. The Ministry has concurrently revised the ‘de-minimis’ or small target exemption threshold, which absolves certain M&As from CCI scrutiny. This exemption now applies to transactions where the asset value in India does not exceed Rs 350 crore or the revenue from India does not exceed Rs 1,000 crore. Vaibhav Choukse, partner and head of competition law at JSA Advocates and Solicitors, hailed the move as a significant step towards facilitating M&As in India, aligning with the government’s agenda of promoting ease of doing business. He noted the 150% increase in the existing thresholds under Section 5 of the Competition Act and the adjustment of De Minimis thresholds. Amit Agarwal, partner at Nangia & Co LLP, echoed Choukse’s sentiments, emphasizing the positive impact of the revisions on the ease of doing business and the M&A landscape in India. However, analysts caution that raising exemption limits may present challenges, particularly for startups in their initial years, which may not meet the asset or revenue criteria but could contribute substantially to acquiring companies post-deal. The example of Facebook’s acquisition of WhatsApp in 2014, which escaped CCI scrutiny due to threshold limitations, highlights the potential implications for competition in relevant markets. While the revisions aim to streamline M&A processes and foster business growth, they also underscore the need for vigilant oversight to ensure healthy competition and market dynamics are preserved, particularly in the digital sphere where transformative deals can have far-reaching consequences.

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Nothing Appoints Yudhisthir Singh as Head of HR for India Operations

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Nothing, a global consumer tech company, has appointed Yudhisthir Singh as the Head of Human Resources for its India operations, effective March 7, 2024. With over 18 years of HR leadership experience spanning various sectors including fintech, FMCG, retail, manufacturing, and banking, Yudhisthir brings a wealth of expertise to his new role. He will be tasked with aligning people’s priorities with the company’s business objectives in India and enhancing talent capabilities, all while fostering a high-performance culture to empower the India team for success. Prior to joining Nothing, Yudhisthir held the position of Senior Associate Director of HR and Talent Advisory at KPMG India. His professional journey also includes significant roles at Bharti Retail, Walmart, Swarovski, RPSG, and BharatPe. Yudhisthir is a graduate in BCom from Maharshi Dayanand Saraswati University and has completed an Executive Management Programme in Strategic Management from IIT Delhi. His core competencies encompass culture and team building, employer branding, talent management, performance management, succession planning, training and development, compensation and benefits, and HRIS. Pranay Rao, Marketing Director India at Nothing, expressed excitement about Yudhisthir’s appointment, stating, “We are thrilled to welcome Yudhisthir to our organisation. With his extensive experience and talent-building capabilities, he will be a valuable addition to our team.”

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RBI Approves Merger of Fincare Small Finance Bank with AU Small Finance Bank

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The Reserve Bank of India (RBI) has given its approval for the merger of Fincare Small Finance Bank Ltd with AU Small Finance Bank Ltd, effective from April 1, 2024. Following the merger, all branches of Fincare Small Finance Bank Ltd will operate as branches of AU Small Finance Bank Ltd. This decision from the RBI comes after the Competition Commission of India (CCI) had previously approved the merger of the two banks. As per the CCI statement, the merger involves Fincare and AU, with AU being the entity resulting from the merger. Shareholders of Fincare will receive shares in the merged entity following the combination. AU Small Finance Bank offers a range of personal and commercial banking services, including deposits, loans, debit and credit card services, institutional banking, and digital banking services. Headquartered in Jaipur, AU Small Finance Bank operates under the AD-II bank category for foreign exchange transactions and provides ancillary services such as the distribution of insurance and investment products like mutual funds. On the other hand, Fincare Small Finance Bank offers deposit services like savings and current accounts, fixed deposits, and recurring deposits, along with lending services such as retail and microfinance loans. Additionally, Fincare provides digital banking services and distributes insurance products. The merger between Fincare Small Finance Bank and AU Small Finance Bank is expected to streamline operations and enhance the range of services offered to customers across the country.  

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Indian Army’s HR Policy Shifts Focus to Specialisation, Colonel Prasad Bansod Leads the Way

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The Indian Army has ushered in a new era of specialisation with its revamped Human Resource (HR) policy, effective from January 1, 2024, aiming to retain expertise in critical fields. Under this policy, officers above the rank of Lieutenant Colonel are now permitted to continue working in specialized domains rather than transitioning to command positions, marking a significant departure from previous norms. Previously, the promotion to Colonel often necessitated officers to assume command roles, leading to a loss of specialized skills in fields such as Artificial Intelligence (AI), space technology, Information Technology (IT), nanotechnology, robotics, and weapons design. However, the new policy aims to retain specialist officers, bolstering the Army’s capabilities in emerging domains. In a landmark development, Lieutenant Colonel Prasad Bansod emerged as the first beneficiary of this policy shift, securing promotion to the rank of Colonel while serving on deputation with the Defence Research and Development Organisation’s (DRDO) small arms laboratory. Bansod’s expertise in weapon design culminated in the development of the ‘Asmi,’ a 9 mm carbine currently undergoing limited series production. Bansod’s promotion underscores the Army’s commitment to recognizing and harnessing specialist talent, enabling officers to pursue their areas of expertise without compromising on career advancement. His promotion signals a departure from the conventional trajectory, allowing officers to contribute significantly to technological advancements and defense capabilities. The ‘Asmi’ carbine, developed by Bansod, holds immense potential in modernizing the Army’s arsenal and bolstering India’s defense capabilities. With the capacity to potentially replace outdated firearms and facilitate defense exports, the carbine represents a significant leap in indigenous weapon development. Bansod’s elevation sets a precedent for other officers to pursue specialization, ensuring that the Army remains at the forefront of technological innovation and operational excellence. The HR policy overhaul aligns with the evolving needs of modern warfare, empowering officers to leverage their expertise for strategic advantage. As the Indian Army embraces a culture of specialization, Colonel Prasad Bansod’s pioneering journey serves as an inspiration for aspiring officers and underscores the Army’s commitment to fostering innovation and excellence in defense.

Indian Army’s HR Policy Shifts Focus to Specialisation, Colonel Prasad Bansod Leads the Way Read More »