The Competition Commission of India (CCI) has given deemed approval to IBM’s recently spun off entities Kyndryl Holdings and Grand Ocean Managed Infrastructure Services to run managed infrastructure services in the country.
The Armonk, New York based technology company received the clearance under CCI’s green channel provision. The provision reportedly enables fast paced approvals for mergers and acquisitions that may have no major impact on appreciable adverse effect on competition in India.
“The target structure will be achieved by a separation of the said MIS business into newly incorporated companies i.e. Kyndryl Holdings LLC (Kyndryl) and Grand Ocean Managed Infrastructure Services Private Limited,” as per a statement filed with the Ministry of Corporate Affairs said.
“Post the proposed transaction, the acquirers (Kyndryl and Grand Ocean) will house and operate the MIS business of the IBM Corporation,” it added.
The restructure, it said, will be based on an “international corporate internal re-organisation”.
Currently, IBM’s managed infrastructure services are housed in India as Network Solutions (NetSol) and IBM India, which are subsidiaries of IBM Corporation.
It includes security, regulatory and risk management services, identity management services and security service offerings under IBM Cloud, along with the cognitive software segment.