New Delhi: The Aditya Birla Group?s purchase of a 27.5 per cent stake in Living Media India Ltd, the holding company of the India Today Group, has been cleared by the Competition Commission of India (CCI), about four months after it was announced.

The stake is being purchased through IGH Holdings Pvt. Ltd, an investment company of the Kumar Mangalam Birla-led business conglomerate. The approval also includes the proposed increase in Aditya Birla Group?s stake in Living Media to a maximum of 49 per cent.

In an order of 14 August, the CCI approved the deal as it felt that though both the Aditya Birla Group and the India Today group are engaged in the retail business, the transaction "is not likely to have an appreciable adverse effect on competition in India".

There are certain conditions precedent in the share subscription and purchase agreement (SSPA) which related to certain transfers to and from Living Media, pursuant to which some businesses including Thomson Press (India), its subsidiaries and some other businesses would be hived off.

After the transfers, the subsidiaries and associate firms of Living Media would include TV Today Network (the owners of news channels Aaj Tak, Tez and Headlines Today), ITAS Media, Today Retail Network, Today Merchandise, Harper Collins, Mail Today Newspaper, India Today Online, Universal Learn Today, Integrated Databases India and Automotive Exchange Pvt Ltd.

The CCI said it received an application for its approval to the deal on 18 June, after which it had sought certain information and documents from IGH Holdings.

The proposed transaction involves an initial acquisition of 24.9 per cent stake in Living Media by IGH and an additional purchase of 2.6 per cent stake, resulting in total purchase of 27.5 per cent stake.

The companies had informed CCI that Aditya Birla group may increase its stake to a maximum of 49 per cent, and the proposed acquisitions and valuation adjustments would be completed within six months from the end of the financial year 2015-16.

The companies had also clarified that the initial purchase of the 24.9 per cent stake and the subsequent acquisitions, including the purchases due to valuation adjustments, are interrelated and interdependent, and the CCI approval has been sought for the proposed acquisition of equity shareholding of up to 49 per cent of Living Media by IGH Holdings.

While India Today is involved in all sectors of media and publishing in addition to event management and education, IGH is an investment company registered with RBI as a non-deposit taking NBFC and its main business is to make and hold investments in the Aditya Birla Group, which has interest in various sectors like metals, cement, textiles, chemicals, mining, telecom, financial services, retail and technology.