Amarchand and K Law lead on LampT Finances acquisition of Fidelitys India MF business

L&T Finance, a subsidiary of L&T Finance Holdings has acquired FIL Fund Management Pvt. Ltd. and FIL Trustee Company Pvt. Ltd., the companies carrying on the mutual fund business of Fidelity in India for an undisclosed amount..Amarchand Mangaldas advised its long-standing client Fidelity with a team led by Partner Ashwath Rau..K Law advised L&T Finance with a team led by Partner Praveen Raju along with Senior Associate Sankar Swamy..Upon completion of the proposed sale, the sponsorship, trusteeship and management of the schemes of the Fidelity Mutual Fund will be transferred to L&T Finance, L&T Mutual Fund Trustee and L&T Investment Management. The combined mutual fund will be the 13th largest in India..The closure is subject to receipt of regulatory approvals. This is the first exit by the Fidelity group of an asset management business in its entire history..According to ET, industry sources said L&T has paid about Rs. 530-550 crore ($104-108 million) to buy Fidelity, valuing the deal at 6.2 percent of Fidelity’s total assets under management of Rs. 8,881 crore as on December 31, 2011. Fidelity’s Indian investment arm was set up in 2004..L&T, which entered the mutual fund industry in September 2009 by buying DBS Cholamandalam Asset Management, had assets worth Rs. 4,616 crore as on December 31, 2011..According to the press release, the fund houses share common investment philosophies, which include “Bottom-up” stock picking, which is largely, research driven. This provides an optimal platform for the smooth and efficient integration of the two businesses.