The Competition Commission of India (CCI) has granted deemed approval to IBM Corp. for an internal restructuring that covers its India business under a fast-track process. An official statement from the competition watchdog said the transaction notified by two new companies set up as part of IBM’s internal reorganization—Kyndryl Holdings LLC and Grand Ocean Managed Infrastructure Services Pvt. Ltd—has been approved.
IBM’s international corporate reorganization seeks to spin off its global managed infrastructure services (MIS) into a separate business. The CCI said the target structure will be achieved by a separation of its MIS business into the newly incorporated companies Kyndryl Holdings and Grand Ocean Managed Infrastructure Services, the acquirers.
These two entities are presently not engaged in any business activity and have been incorporated only to implement the proposed deal. Post the transaction, the acquirers will house and operate IBM’s MIS business.
IBM’s MIS business in India is presently housed in Network Solutions Pvt. Ltd and IBM India, which are indirect wholly-owned subsidiaries of IBM. nbThe CCI did not mention any modifications to the transaction.